Vertiv (VRT) Could Be the Biggest Winner of the AI Data Center Boom

We recently published a list of 10 AI Stocks on Analyst’s Radar Today. In this article, we are going to take a look at where Vertiv Holdings Co (NYSE:VRT) stands against other AI stocks that are on analyst’s radar today.

On May 27, Evercore ISI analyst Amit Daryanani raised the firm’s price target on Vertiv Holdings Co (NYSE:VRT) to $150 from $100 and kept an “Outperform” rating on the shares. Vertiv Holdings Co (NYSE:VRT) offers digital infrastructure technology and services for data centers, communication networks, and commercial and industrial facilities.

According to the firm, Vertiv appears to be a strong option for investors who wish to benefit from the growth in artificial intelligence data centers, including hyperscale facilities. With data centers growing more complex by the minute, Vertiv’s services are very likely to become critical to their operation.

This is why the firm believes that Vertiv’s stock “looks like a compelling way for investors to play secular trends related to AI data centers” and is “the best-positioned company to benefit from the AI tailwinds” on the data center physical infrastructure side.

Vertiv (VRT) Could Be the Biggest Winner of the AI Data Center Boom

A close-up of a group of technicians working on complex data center systems.

Vertiv Holdings Co (NYSE:VRT) is seen as a comprehensive provider based on its capabilities in liquid cooling, servicing, and lifecycle management. The transition towards liquid cooling is likely to result in growth for Vertiv. Meanwhile, the company is also recognized for its opportunities in power management.

This is especially true now that AI data centers are demanding more equipment and shifting towards higher voltage infrastructure. The firm expects integrated systems and modular solutions to bring sustained leverage and margin expansion.

Overall, VRT ranks 6th on our list of AI stocks that are on analyst’s radar today. While we acknowledge the potential of VRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VRT and that has 100x 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.