Meet the Artificial Intelligence (AI) Infrastructure Stock That Has Crushed Nvidia and Broadcom With a 270% Jump. It Can Still Fly Higher.
Publish Date: 2026-04-30 12:11:00
Source Domain: www.theglobeandmail.com
Here are the key points from the article:
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Vertiv’s Growth: Vertiv has seen a substantial increase in demand for its power management and cooling solutions, primarily driven by the surging requirements of AI data centers. The company’s stock has nearly quadrupled over the past year, driven by improving growth rates and solid earnings growth.
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Raised Guidance: Vertiv recently raised its full-year 2026 guidance, predicting a 51% increase in adjusted earnings per share to $6.35, up from the earlier estimate of $6.02, and revenues to $13.75 billion, up from the prior $11.8 billion.
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AI Data Center Demand: AI data centers demand more energy and cooling solutions due to powerful chips required for model training and inference workloads. Vertiv provides uninterruptible power supplies (UPS), liquid-cooling solutions, and other products to meet these needs.
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Market Prospects: The global data center cooling market and power solutions market are anticipated to grow significantly by 2033. Vertiv’s rapid growth suggests it is capturing a larger share of this lucrative market.
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Stock Valuation: Vertiv is currently trading at a high forward P/E ratio of 52 times, but this valuation could be justified by its ability to sustain growth and exceed earnings estimates.
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Potential for Further Gains: Even though Vertiv’s stock price is high, analysts project Vertiv could hit $10.78 per share by 2028; if the company meets this growth potential and trades at 43 times earnings, its stock price could reach $463, offering investors a significant upside potential.
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Stock Advisor’s Perspective: The Motley Fool Stock Advisor analysts identified 10 stocks they believe will perform exceptionally in the coming years, but Vertiv was not among them. Stock Advisor has delivered an average return of 979%, far outperforming the S&P 500’s 200% return.
