Analyst Says This is a Top Data Center Stock Amid ‘Record’ Orders, $8.5 Billion Backlog

We recently published Trending Analyst Calls: 10 Stocks to Buy and Sell. Vertiv Holdings Co (NYSE:VRT) is one of the trending analyst calls.

Stephanie Link, Chief Investment Strategist and Portfolio Manager at Hightower, recently made some bullish comments about Vertiv during a CNBC program. She believes Vertiv is still a strong data center play. The stock is up 63% so far this year.

“It is a data center buildout play. Capex is expected to grow about 50% between 2025 and 2029. And in that kind of backdrop, this company is able to probably put up a 15 to 20% organic growth. They have a backlog of 8.5 billion. Their book to bill is running at 1.2 times. And they’ve had record orders of 3.22 billion which rose 25% year-over-year last quarter. And what I think is the real story is not only is it the growth but I think eventually the operating margins. They’re troughing right now and I think they can accelerate from this quarter going forward and their target is to get to 25% by 2028. So add it all up Frank and I think you can see something like 7 to 10 dollars in earnings power.”

When asked about the high valuation of the stock compared to its peers, Link said the company has strong growth and it can see margin expansion in the future. She believes Vertiv Holdings Co (NYSE:VRT) has more “operating leverage” and a “best-in-class” management.

ClearBridge Select Strategy stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its second quarter 2025 investor letter:

“Vertiv Holdings Co (NYSE:VRT) and Comfort Systems continue to benefit from the growing focus on AI and the underlying infrastructure investments required to support it. Vertiv delivers power and thermal management systems critical for data center operations, while Comfort Systems provides HVAC and electrical systems installation and maintenance. These names helped offset weakness across our more cyclical industrial positions that have yet to see a meaningful upturn in economic activity.”

While we acknowledge the risk and potential of VRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.