Why Vertiv Stock Soared Today
Key Points
Vertiv's power and cooling systems are in high demand.
The data center equipment maker's profits are surging.
- 10 stocks we like better than Vertiv ›
Shares of Vertiv Holdings (NYSE:VRT) popped on Wednesday after the digital infrastructure supplier's leadership provided bullish commentary on the artificial intelligence (AI) market.
Image source: Getty Images.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
AI-fueled growth
Vertiv's net sales surged 61% year over year to $4.3 billion in the third quarter. The gains were broad-based. Revenue in the company's Americas, Asia-Pacific, and Europe, the Middle East, and Africa (EMEA) segments climbed 75%, 50%, and 23%, respectively.
Vertiv's power and cooling products are increasingly being used in AI data centers. Although concerns are mounting that rising debt levels and higher interest rates could force construction to slow, Vertiv CEO Giordano Albertazzi has a different view.
"We are in the middle of the largest infrastructure build-out, and it's accelerating," Albertazzi said. "The demands on data center infrastructure are evolving faster than ever, and Vertiv's role in that build-out keeps expanding."
To seize this opportunity, Vertiv is investing aggressively to accelerate product development and boost its production capacity.
All told, Vertiv's adjusted earnings rocketed 78% higher to $2.21 per share. That was well above Wall Street's projections of $1.82.
Additionally, Vertiv's operating and free cash flow jumped 64% and 50%, respectively, to $794 million and $652 million.
Vertiv is well-positioned to profit from future advances in AI
Management now expects full-year adjusted earnings to increase by 70% to $7.15 per share.
"We are in an industry where the more technology changes, the better it is for us," executive chairman Dave Cote said. "We keep investing, we keep building, and what we have built is designed to scale."
Should you buy stock in Vertiv right now?
Before you buy stock in Vertiv, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vertiv wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $337,166!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,339,143!*
Now, it’s worth noting Stock Advisor’s total average return is 904% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 28, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vertiv. The Motley Fool has a disclosure policy.
Recommended Articles
