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Buy Top AI Stock Vertiv Before It Soars After Oracle's Report

Key Takeaways

  • {\"0\":\"Vertiv works with Nvidia and is a key behind-the-scenes winner in the AI age.\\r\\n\\r\\n\\r\\n\",\"1\":\"The AI infrastructure stock trades 12% below its price target and looks ready to break out.\\r\\n\\r\\n\",\"2\":\"The company\'s improving earnings outlook earns VRT a Zacks Rank #1 (Strong Buy).\\r\\n\\r\\n\"}

Oracle bolstered the case for the artificial intelligence spending boom when it reported its quarterly results on September 9. The cloud computing giant’s backlog soared 359% to $455 billion, driven by spending from AI hyperscalers like Amazon, a blockbuster deal with OpenAI, and more.

Vertiv ((VRT - Free Report) ), which works with Nvidia, is a behind-the-scenes firm that benefits directly from the AI data center boom. The Ohio-based firm’s growing portfolio helps make sure the high-density computing power needed to fuel the AI age runs as smoothly as possible 24/7.

Vertiv earns a Zacks Rank #1 (Strong Buy) right now, driven by its improving earnings outlook. The picks-and-shovels AI stock is also gaining more attention from Wall Street analysts, and could be on the verge of a technical breakout while trading 12% below its average Zacks price target.

It’s time for investors to consider buying Vertiv, which already blew away all of the AI hyperscalers over the last three years.

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Buy AI Stock Vertiv Now and Hold Forever

Vertiv’s hardware, software, analytics, and ongoing services portfolio is focused on power, cooling, and IT infrastructure. Its product categories include critical power, thermal management, racks & enclosures, monitoring & management, and beyond.

In other words, Vertiv operates in the background of big tech and AI, supporting the constant expansion and the day-to-day operations of AI data centers and the broader technology-driven economy.

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The digital infrastructure company has never been more critical and in demand. The enormous expansion of data centers requires massive amounts of high-performance computing power that operates at peak performance 24/7. Vertiv has partnered with the current titan of AI, Nvidia ((NVDA - Free Report) ), to help solve future data center efficiency and cooling challenges.

VRT posted another beat-and-raise quarter at the end of July that pushed its 2026 earnings estimate 11% higher. Vertiv’s recent wave of upward revisions earned it a Zacks Rank #1 (Strong Buy) and restarted its impressive upward revision trend that began in 2023.

The firm also completed its acquisition of Great Lakes Data Racks & Cabinets on August 20, furthering Vertiv’s “capabilities to customize at scale and configure at speed for AI and high-density computing environments.”

The company is projected to grow its revenue by 25% in 2025 and 16% next year to $11.55 billion—double its 2021 total. Vertiv is expected to expand its adjusted earnings per share (EPS) by 34% this year and 27% next year.

The data center infrastructure company’s strong bottom-line growth outlook is even more impressive since VRT grew its EPS by 60% last year and 236% in 2023.

Zacks Investment Research
Image Source: Zacks Investment Research

Wall Street is paying more attention to Vertiv than ever before. Zacks has 23 brokerage recommendations for VRT, up from 19 three months ago—18 of those recommendations are “Strong Buys.” This makes sense considering its huge AI-boosted growth and ability to expand steadily no matter which AI hyperscalers eventually dominate or what AI upstarts turn into the next Wall Street darlings.

The dividend-paying AI infrastructure stock has climbed 900% in the past three years, blowing away all of the AI hyperscalers (Meta is the best performer of that group, up 345% in the past three years). 

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Image Source: Zacks Investment Research

VRT outclimbed Nvidia in the past 12 months, yet it trades around 12% below its pre-DeepSeek highs from January and its average price target. On the valuation side, Vertiv trades at a 30% discount to its highs at 30.1X forward 12-month earnings and nearly in-line with Tech’s 28.6X despite VRT stock jumping 900% in three years vs. Tech’s 107%.

VRT stock surged above its 50-day earlier this week. Now all it needs is a little bit more momentum before it breaks above the top of its trading range to surge to new all-time highs. 


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