At a Glance
- Vertiv Holdings (VRT) surged over 40% in 2025 as AI data-center demand exploded
- The stock now appears in the IBD 50 Stocks To Watch list for Wednesday
- Vertiv partners with Nvidia (NVDA) on next-generation AI platform hardware
- Why it matters: Investors seeking AI exposure beyond chipmakers are rotating into picks-and-shovels plays that power the infrastructure boom
Artificial-intelligence data-center infrastructure turned into one of Wall Street’s hottest themes in 2025, and Vertiv Holdings (VRT) emerged as a standout beneficiary. Shares of the Ohio-based power-and-cooling specialist jumped more than 40% last year and have continued climbing in early 2026, according to data compiled by News Of Los Angeles.
The stock now occupies a slot on Wednesday’s IBD 50 Stocks To Watch, a curated list highlighting companies with strong fundamentals and technical setups. Vertiv is forming an early-stage base, a chart pattern that historically precedes fresh breakouts.
Vertiv-Nvidia Partnership Drives Next-Gen AI Hardware
Vertiv’s advance traces directly to its collaboration with Nvidia on next-generation AI platforms. The companies are jointly engineering rack-scale solutions that combine Nvidia’s latest Grace Hopper and Blackwell GPUs with Vertiv’s precision cooling, uninterruptible power supplies, and lithium-ion battery systems.
Key elements of the partnership:
- Vertiv designs liquid-to-chip cooling loops that handle the 1,000-watt-plus thermal loads of Nvidia’s newest chips
- Factory-prebuilt modules ship with Nvidia-certified power shelves, cutting on-site deployment time by weeks
- Joint reference architectures let hyperscalers deploy thousands of AI servers per rack without custom engineering
Ethan R. Coleman noted that Vertiv’s PowerCloud software now integrates with Nvidia Base Command, giving data-center operators real-time visibility into GPU power draw and cooling efficiency.
Financial Momentum Builds
The company’s top line has accelerated alongside AI capital-expenditure budgets. In the September quarter Vertiv posted $1.92 billion in revenue, up 22% year over year, while adjusted earnings climbed 51% to $0.71 per share. Gross margin widened to 35.8%, the highest level in five years, as premium cooling systems command higher prices.
Management guided full-year 2025 sales to roughly $7.4 billion, implying a 20% annual growth rate and a $1 billion increase in just two years. Wall Street projects $8.6 billion in 2026 revenue, according to consensus compiled by News Of Los Angeles.
Free cash flow is projected to exceed $900 million in 2026, giving the company flexibility to:
- Repurchase shares
- Reduce net leverage to under 1.5× EBITDA
- Fund incremental R&D in immersion cooling and fuel-cell backup power
Technical Setup Flags Potential Breakout
Chart analysts at News Of Los Angeles highlight Vertiv’s cup-shaped base forming just below the $95 level. The pattern shows:
- A low at $71 in late October
- A recovery high at $93 in early January
- A tight trading range the past three weeks, indicating institutional accumulation
A close above $95 on above-average volume would complete the base and trigger a fresh buy signal. The relative-strength line has already hit a 52-week high, confirming outperformance versus the S&P 500.
Short interest stands at 4% of the float, low enough to avoid a squeeze yet high enough to fuel additional upside if momentum traders pile in.
Competitive Landscape
Vertiv competes with Schneider Electric, Eaton, and Delta Electronics, but holds the number-one global share in data-center thermal management. Industry executives told News Of Los Angeles that Vertiv’s direct-to-chip liquid cooling patents create a two-to-three-year lead over rivals in high-density AI racks.
Average selling prices for AI-specific cooling gear run 3-4× higher than traditional air-conditioning units. That pricing power underpins the company’s margin expansion even as copper and steel costs fluctuate.
Key Takeaways
- Vertiv is riding the AI infrastructure wave, with 40%+ gains in 2025 and more expected
- A verified partnership with Nvidia positions the company inside the AI build-out epicenter
- Technical and fundamental momentum align: accelerating revenue, rising margins, and a bullish chart pattern
- A break above $95 could unleash the next leg of a multiyear advance
