Here's Why Wall Street Is Bullish on AI Stock Vertiv Holdings (VRT)
Vertiv Holdings (VRT) stock has recovered strongly from the lows seen in April and has risen more than 11% over the past month, as concerns about a slowdown in AI (artificial intelligence) spending have eased. VRT stock has rallied more than 30% in the past year. The data center infrastructure company is gaining from the strong demand for its energy-efficient cooling and power solutions that are required to support the ongoing AI boom.
Confident Investing Starts Here:
Vertiv: Riding the AI Wave
Vertiv impressed investors with solid Q1 earnings beat. The company's Q1 2025 revenue grew 24%, while adjusted EPS (earnings per share) increased by about 49%. The AI infrastructure company also raised its full-year guidance, reflecting confidence in navigating macro challenges and mitigating the impact of tariffs announced by the Trump administration.
'Our partnership with Nvidia continues to place us at the heart of industrial-scale AI factory deployments,' said VRT CEO Giordano Albertazzi.
Recently, Vertiv further strengthened its collaboration with chip giant Nvidia (NVDA) and announced an energy-efficient 142kW cooling and power reference architecture for the latter's GB300 NVL72 platform. Overall, VRT is confident about its growth ahead, with a 10% rise in Q1 2025 backlog to $7.9 billion compared to the end of 2024.
Analysts Raise Price Target for VRT Stock on AI Demand
Recently, Bank of America analyst Andrew Obin reiterated a Buy rating on Vertiv stock and increased the price target to $140 (17.8% upside potential) from $135. The 5-star analyst emphasized that the rapid advancement of AI is transforming the data center infrastructure landscape, driving robust demand for power, cooling, and advanced hardware. BofA expects data center spending to grow at a 13% CAGR (compound annual growth rate) from 2024 to 2028, reaching $532 billion. In fact, he expects infrastructure-related spending to climb at an even faster 16% CAGR.
Notably, Obin believes that Vertiv, Eaton (ETN), and Johnson Controls (JCI) are well-positioned to leverage the shift toward high-density racks and advanced cooling solutions like direct-to-chip liquid cooling. He also named GE Vernova (GEV) as a top pick in the power generation space, citing its potential to meet rising demand. With only 5% of existing data centers equipped to handle AI workloads, Obin expects a massive upgrade cycle ahead. Also, with AI-driven demand showing no signs of slowing, Obin is upbeat about these stocks.
Meanwhile, Citi analyst Andrew Kaplowitz increased the price target for VRT stock to $130 (9.4% upside potential) from $98 and reaffirmed a Buy rating. Following a meeting with the management, the 5-star analyst stated that he is confident that Vertiv remains well-positioned for huge industrial market outgrowth, thanks to durable AI/data center-related growth (Citi forecasts overall global data center IT load growth at 14% CAGR through 2030) and its focus on innovation. Kaplowitz also highlighted VRT's efforts to mitigate tariff headwinds over time. Citing the possibility for margin expansion, strong underlying fundamentals, and increased confidence in improving performance, Kaplowitz increased the EV/EBITDA target multiple for VRT stock to 21x from 16x.
Is VRT a Good Stock to Buy?
Overall, Vertiv Holdings stock scores a Strong Buy consensus rating based on 12 Buys and two Holds. The average VRT stock price target of $116.93 indicates a possible downside of 1.6% from current levels, following the strong rally over the past year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
Meta Platforms (META) Reportedly Held Acquisition Talks with Perplexity AI
Meta Platforms (META) reportedly held acquisition talks with Perplexity AI, an artificial intelligence search startup, before ultimately deciding to invest heavily in another AI company, Scale AI. According to Bloomberg, the discussions between Meta and Perplexity did not result in a deal, and both companies walked away without pursuing the acquisition. Neither Meta nor Perplexity have commented publicly on the matter. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Instead, Meta announced earlier this month that it would invest $14.3 billion in Scale AI, which allowed it to acquire a 49% stake in the company and value it at over $29 billion. As part of the deal, Scale's CEO Alexandr Wang will join Meta to lead its new 'superintelligence' division, which focuses on developing artificial general intelligence (AGI). For context, AGI refers to AI systems that can understand, learn, and apply knowledge across a wide range of tasks at a human-like level of intelligence. This move highlights Meta's shift toward building more advanced AI systems that go beyond narrow task-based models. Founded in 2016, Scale AI helps train generative AI models by connecting them with a large network of human experts. Meta's significant investment in the company shows that CEO Mark Zuckerberg is determined to strengthen the company's position in the AI market. And Zuckerberg is not the only one, as many other tech giants have invested heavily in AI startups ever since Microsoft's blockbuster deal with OpenAI in 2023. Is Meta a Buy, Sell, or Hold? Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 42 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $707.16 per share implies that shares are almost fairly valued. See more META analyst ratings
Globe and Mail
2 hours ago
- Globe and Mail
Tesla (TSLA) Invites a Small Group of People to Test Its Robotaxi Service
EV maker Tesla (TSLA) has started inviting a small group of people to try out its robotaxi service in Austin, Texas. The test could begin as early as Sunday, according to Reuters. Riders must be at least 18 years old, and a Tesla employee will sit in the front passenger seat during each ride. Furthermore, the test will use about 10 Model Y SUVs running on Tesla's Full Self-Driving software. Those who receive the invitation can download Tesla's Robotaxi app to call a ride, and are asked to share their feedback on the experience. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter This trial is important for Tesla as the company shifts its focus from building affordable electric cars to working on robotics and artificial intelligence. Unsurprisingly, CEO Elon Musk says that safety is the top priority, with humans monitoring the cars remotely. He believes that the robotaxi service can grow quickly if the trial goes well. Still, experts are worried about Tesla's approach, which relies solely on cameras and AI, rather than incorporating additional sensors like lidar or radar. These worries grow in conditions like fog, heavy rain, or bright sunlight. As a result, some lawmakers and safety experts want more caution, which led a group of Austin-area Democratic lawmakers to ask Tesla to wait until September, when new state rules for autonomous vehicles take effect. It is worth noting that self-driving services are expensive and risky, and companies like Tesla, Waymo (GOOGL), and Zoox (AMZN) have already faced federal investigations and recalls after accidents. What Is the Prediction for Tesla Stock? Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 12 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $286.14 per share implies 11% downside risk. See more TSLA analyst ratings
Globe and Mail
2 hours ago
- Globe and Mail
'Roadblock': Paramount Stock (NASDAQ:PARA) Surges as the Trump Settlement Sputters
As it turns out, entertainment giant Paramount (PARA) was actually fairly close to a deal with President Trump over the 60 Minutes lawsuit. But, when the deal was fairly close, a 'roadblock' emerged and put a halt to the whole matter, at least for now. Investors reacted with surprising strength, and perhaps even more surprising positivity. Paramount shares gained nearly 2.5% in the closing minutes of Friday's trading. Confident Investing Starts Here: The settlement had reached $35 million, reports noted, when Paramount suddenly found itself paralyzed by indecision. That delay caused Trump lawyers to pivot and pull back to their original demand, calling for a $50 million settlement. The biggest problem seems to be that the Federal Communications Commission (FCC) is also involved in this, and needs to sign off on the merger with Skydance as well. Reports suggested that Paramount brass believes that the FCC's sign-off on the deal needs to be contingent on settling the case, but by like token, the idea that requiring FCC approval as part of the settlement looks a lot like a bribe. Trump's legal team, reports note, has already been clear that the Trump suit and the FCC case are two separate matters. But with outside organizations looking to launch their own lawsuits should the settlement go through, looks may count for more here than anyone expected. South Park Losses Mount Meanwhile, as Paramount faces the prospect of losing South Park exclusivity, it quietly pulled another old episode from the field. The pull this time showed up in the Canadian and Australian markets, reports noted, and this time, featured Butters' Very Own Episode pulled from Paramount+. Why, however, is a bit of a mystery. Several South Park episodes are apparently a bit too spicy for streaming, in retrospect, with around a dozen classic episodes set to be pulled from the catalog and relegated to a 'ban list', reports noted. The reports got stranger as an Australian viewer noted that the Paramount+ listing had been pulled, but the episode could still be watched by watching through Paramount+ on Amazon (AMZN) Prime Video. Is Paramount Stock a Good Buy Right Now? Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on two Buys, eight Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 18.62% rally in its share price over the past year, the average PARA price target of $12.08 per share implies 2.23% downside risk. See more PARA analyst ratings Disclosure Disclaimer & Disclosure Report an Issue
