The earnings season is underway, and investors are particularly focusing on the performance of artificial intelligence (AI) companies to determine if the hype surrounding them is justified. Using TipRanks’ Stock Comparison Tool, we will compare two stocks that have been riding the ongoing AI wave: Vertiv Holdings (VRT) and BigBear.ai (BBAI), to find the better pick ahead of the upcoming second-quarter results, according to Wall Street analysts.
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Vertiv Holdings (NYSE:VRT) Stock
Vertiv Holdings is a digital infrastructure company that is witnessing robust demand for its portfolio of power, cooling, and IT infrastructure solutions and services. In particular, the company is experiencing solid demand for its AI infrastructure solutions for data centers amid the ongoing artificial intelligence boom. The company’s partnership with chip giant Nvidia (NVDA) is viewed as one of its key advantages.
After reporting solid Q1 2025 results, backed by a 24% year-over-year jump in sales, all eyes are on Vertiv’s second-quarter results, scheduled to be announced on July 30. Wall Street expects Vertiv to report earnings per share (EPS) of $0.83, reflecting a nearly 24% growth compared to the prior-year quarter. Revenue is expected to rise 20.5% year-over-year to $2.35 billion.
Is Vertiv a Good Stock to Buy?
Ahead of the Q2 results, Bank of America Securities analyst Andrew Obin increased the price target for Vertiv stock to $150 from $140 and reiterated a Buy rating. The 5-star analyst noted that VRT stock rallied after the company reported a 13% year-over-year growth in Q1 2025 orders. Obin expects 21% year-over-year organic revenue growth and a 19.1% adjusted operating margin, resulting in an adjusted EPS estimate of $0.84 for Q2 2025. His revised price target is based on an EV/EBITDA (2026) multiple of 23x, up from the previous level of 21x. Obin highlighted that his multiple for VRT stock reflects a premium to the peer average of 18x, given the company’s superior earnings growth.
Overall, Wall Street has a Strong Buy consensus rating on Vertiv Holdings stock based on 13 Buys and two Holds. The average VRT stock price target of $134.53 indicates 7.37% upside potential from current levels. VRT stock has jumped about 43% year-to-date.
BigBear.ai Holdings (NYSE:BBAI) Stock
BigBear.ai offers AI solutions and services for defense, national security, and critical infrastructure. The growing interest in defense-aligned AI players, such as Palantir Technologies (PLTR) and BigBear.ai, is driving their stocks higher. PLTR stock has rallied about 424% over the past year, while BBAI stock has jumped more than 391%.
However, unlike Palantir’s stellar growth rates in recent quarters, BigBear.ai’s performance has been comparatively underwhelming. Notably, in Q1 2025, the company’s revenue increased by a modest 5% to $34.8 million, while adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) loss increased to $7 million from $1.6 million in the prior-year quarter. BigBear.ai blamed the higher EBITDA loss on increased research and development expenses and recurring selling, general, and administrative expenses resulting from government funding delays. However, BBAI ended Q1 2025 with a strong backlog of $385 million.
Looking ahead, BigBear.ai is scheduled to announce its second-quarter results on August 11. Investors will expect the company to report solid growth numbers that justify the stock’s elevated valuation after a strong rally. Wall Street projects a 3.5% growth in BigBear.ai’s revenue to $41.2 million. Analysts expect the company to report a slightly wider loss per share of $0.06 compared to $0.05 in the prior-year quarter.
What Is the Price Target for BBAI Stock?
Earlier this month, H.C. Wainwright analyst Scott Buck increased the price target for BigBear.ai Holdings stock to $9 from $6 and reiterated a Buy rating. The analyst noted the outperformance of BBAI stock in the first half of the year compared to the Russell 2000 Index, thanks to various factors, including new customer and contract momentum as well as favorable underlying secular trends in AI-driven defense and security.
Buck noted that the double-digit revenue growth expectations for 2026 are supported by BBAI’s backlog and encouraging signs that its products are resonating across major growth verticals. He also noted key deployments and recent deals, including a strategic partnership in the UAE. Buck stated that the positive momentum supports an expansion in the stock’s Price-to-sales (P/S) valuation multiple to 12.0x from 10.0x. He noted that this valuation is still well below Palantir’s 66.0x multiple based on 2026 revenue estimates, indicating that there is considerable room for further multiple expansion in BBAI stock. “We recommend investors continue to accumulate a position in BBAI shares ahead of improving financial results in 2H25 and 2026,” concluded Buck.
With two Buys and two Holds, BigBear.ai Holdings stock scores a Moderate Buy consensus rating. The average BBAI stock price target of $5.83 indicates a possible downside of about 21% from current levels.
Conclusion
Ahead of Q2 results, Wall Street is highly bullish on Vertiv Holdings stock and cautiously optimistic on BigBear.ai. Analysts see higher upside potential in VRT stock and downside risk in BBAI stock. Wall Street’s bullish thesis for Vertiv stock is backed by robust demand for data center infrastructure to support the AI boom.