Vertiv: The Most Reliable AI Infrastructure Bet In A Crowded Market

Dec. 02, 2025 9:17 AM ETVertiv Holdings Co (VRT) Stock
The Alpha Analyst
2.59K Followers

Summary

  • Vertiv Holdings (VRT) is a compelling buy, leveraging its leadership in liquid cooling and power solutions for data centers amid AI-driven secular growth.
  • VRT's moat is reinforced by high integration costs, sticky contracts, and robust order book visibility, with a $9.5B backlog nearly matching annual revenue.
  • Operating margins are expanding, with a 25% target by 2029, and VRT's strong balance sheet supports both organic growth and strategic acquisitions.
  • Despite a premium valuation (~32x EV/EBITDA), VRT's structural advantages, execution, and reliable revenue streams justify its buy rating for long-term investors.

Technician Inspecting Server in Immersion Cooling Tank

halbergman/E+ via Getty Images

Vertiv Holdings (VRT) is a compelling buy despite slightly elevated valuations. I find its liquid cooling leadership position comforting within an otherwise highly competitive infrastructure layer within the AI ecosystem. The positioning is critical and has

Quick Insights

  • VRT's integration at the architectural level creates vendor lock-in, ensuring sticky contracts and revenue visibility, which justifies its valuation premium over more commoditized peers.

  • Margin expansion is driven by higher pricing discipline, a shift to higher-margin products, with a 25% operating margin target by 2029.

  • With net leverage at 0.5x (targeting 0.2x), VRT's strong balance sheet enables aggressive capacity expansion and opportunistic acquisitions to further entrench its market position.

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About VRT Stock

SymbolLast Price% Chg
VRT
160.66-0.67%
Pre163.861.99%
Chart
Combination chart with 2 data series.
The chart has 1 X axis displaying Time. Data ranges from 2025-11-17 09:30:00 to 2025-12-16 16:00:00.
The chart has 1 Y axis displaying values. Data ranges from 151.4201 to 189.02.
End of interactive chart.
Market Cap
$61.43B
PE (FWD)
38.92
Yield
0.11%
Rev Growth (YoY)
28.76%
Short Interest
2.27%
Prev. Close
$161.74
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More on VRT

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SymbolLast Price% Chg
VRT
160.66-0.67%
Pre:163.861.99%
Chart
Chart with 160 data points.
The chart has 1 X axis displaying Time. Data ranges from 2025-12-11 09:30:00 to 2025-12-16 16:00:00.
The chart has 1 Y axis displaying values. Data ranges from 156.73 to 178.6.
End of interactive chart.

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