Vertiv Holdings Co (VRT): A Bull Case Theory

We came across a bullish thesis on Vertiv Holdings Co (VRT) on Substack by OppCost. In this article, we will summarize the bulls’ thesis on VRT. Vertiv Holdings Co (VRT)’s share was trading at $105.38 as of May 15^th. VRT’s trailing and forward P/E were 61.27 and 29.76 respectively according to Yahoo Finance.

Vertiv Holdings Co. (VRT) stands as a global leader in critical digital infrastructure, offering essential solutions for data centers, communication networks, and industrial operations. The company is experiencing strong tailwinds driven by explosive demand from artificial intelligence and high-density computing workloads, leading to robust revenue growth and significant margin expansion. Operational excellence, bolstered by the Vertiv Operating System, and strategic supply chain optimizations have unlocked meaningful free cash flow generation over the past two years.

Vertiv’s specialized expertise in power and thermal management—particularly advanced liquid cooling solutions—positions it at the forefront of the secular trend in data center buildouts, which are accelerating due to AI’s compute demands. Valuation models suggest substantial upside between $115–$135 per share, while an Owner Earnings model offers a more conservative estimate around $98 per share. The projected 5-year Internal Rate of Return based on current pricing underscores an attractive risk/reward profile. The company’s ongoing momentum is supported by strategic acquisitions, growing order backlogs, and increasing adoption of its next-gen cooling technologies, all while maintaining strong financial discipline. While key risks—such as a slowdown in AI capex, competition from larger players, execution on scaling initiatives, and geopolitical tariff pressures—remain, Vertiv’s focused execution and improving fundamentals make it a compelling long-term investment. The stock is a BUY, with upside potential as digital infrastructure demand surges globally.

Vertiv Holdings Co (VRT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 92 hedge fund portfolios held VRT at the end of the fourth quarter which was 91 in the previous quarter. 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 timeframe. If you are looking for an AI stock that is more promising than VRT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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