Vertiv Holdings (VRT) stock has rallied nearly 19% in the past month and more than 48% over the past year, as the data center infrastructure company is seeing solid demand amid the ongoing artificial intelligence (AI) wave. Softness in the EMEA (Europe, the Middle East, and Africa) business, as well as the impact of tariffs on margins, may weigh on the stock in the near term. Nevertheless, most Wall Street analysts are looking beyond the short-term pressures and continue to view Vertiv stock as a compelling AI play for the long term.
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Vertiv Is Well-Positioned for Continued Growth
Vertiv Holdings is well-positioned to capture continued growth in the AI space through its portfolio of power, cooling, and IT infrastructure solutions and services. In April, the company delivered upbeat first-quarter earnings and expressed confidence in further growth, saying that it continues to see accelerated scaling of AI deployments across the data center market.
Moreover, CEO Giordano Albertazzi is optimistic about the company’s strategic partnership with chip giant Nvidia (NVDA). In the Q1 earnings press release, Albertazzi stated, “Our partnership with NVIDIA and our reference designs for their GB200 and GB300 NVL72 platforms position Vertiv at the forefront of AI factory deployment at industrial scale.” Last month, the company announced its energy-efficient 142kW cooling and power reference architecture for the NVIDIA GB300 NVL72 platform. Vertiv believes that the combination of its infrastructure solutions and Nvidia’s AI platforms enables customers to deploy next-generation data centers that are more efficient, scalable, and ready for the most demanding AI workloads.
Moreover, Vertiv is confident about addressing tariff-related headwinds, backed by operational and commercial improvements made over the past three years. The company expects to deliver organic net sales growth in the range of 16.5% to 19.5% in 2025, with adjusted operating margin between 19.75% and 21.25%.
Is VRT Stock a Good Buy?
Recently, Citi analyst Andrew Kaplowitz reiterated a Buy rating on Vertiv Holdings stock and boosted the price target to $130 from $98. Following a meeting with management, the 5-star analyst highlighted that Vertiv is well-positioned for significant industrial market outgrowth, driven by steady AI/data center-related growth and a focus on innovation. Kaplowitz is also confident about VRT’s ability to address tariff-related headwinds.
With 12 Buys versus two Holds, Vertiv Holdings stock scores a Strong Buy consensus rating. Given the rally over the past year and near-term challenges, the average VRT stock price target of $116.93 indicates about 9% downside risk.
