During the October 7 episode of Mad Money, a caller asked whether Jim Cramer had concerns about data center infrastructure while discussing Vertiv Holdings Co (NYSE:VRT). He replied:
No, no. I think Vertiv is a good company. I think they’ve got a great order book. I think if you believe in the data center, then I think you have to believe in Vertiv. I think it’s a really good company. I like to buy it when it’s down. And I’ve got to tell you, it’s not even, it’s not a spec. It’s a very good situation, though. And I want to be really clear about this. If you had to buy one, other than GE Vernova, that handles the whole soup to nuts and it’s down a lot, I would buy Vertiv.
Vertiv ranks fourth among our 10 Best AI Enabler Stocks to Buy Now, but which three AI infrastructure stocks ranked higher?
Cooling Systems and Power Generation Address Different Needs
Vertiv Holdings Co supplies power, cooling, and related infrastructure for data centers. GE Vernova Inc. (NYSE:GEV) participates further upstream through generation equipment and grid infrastructure. Their exposure overlaps around electricity demand, but the businesses address different parts of the buildout.
Vertiv’s second-quarter sales increased 24% to approximately $3.27 billion, including 18% organic growth. Adjusted operating margin expanded to 22.6% from 18.5%, and adjusted earnings increased 60% to $1.52 per share. Management raised its full-year sales outlook to $13.8 billion – $14.2 billion. Vertiv’s growth strategy also reaches beyond cooling equipment inside the server rack. Its entry among the strongest three-year AI stock performers highlighted an acquisition addressing another part of the heat-removal challenge.
The company is also broadening its service capabilities. On September 24, Vertiv agreed to acquire King Environmental Services, which provides fluid management, commissioning and testing for liquid-cooled facilities. The planned acquisition would expand these capabilities across Europe, the Middle East and Africa. Vertiv expects the transaction to close in the fourth quarter and said its financial impact would not be material. The service expansion follows a separate move to bring manufacturing closer to customers. Coverage of Vertiv among July’s data-center stock picks examined where it was adding capacity and which markets that investment was intended to serve.
GE Vernova’s second-quarter orders reached $24.2 billion, up 88% organically, while backlog increased to $176 billion. Its Electrification business received more than $5 billion of data center orders during the first half, exceeding twice the full-year 2025 total. Generation is only one part of the electricity investment landscape. GE Vernova also appeared in a billionaire-focused battery-stock list, which brings a different group of businesses into the power-infrastructure discussion.
Strong Demand Still Has to Become Profitable Deliveries
Vertiv Holdings Co reported temporary supply-chain congestion and timing shifts as projects became larger and more complex. Its disclosures also warn that orders can be delayed or canceled and that expected backlog revenue may not materialize. The company’s opportunity depends on delivering equipment and services as well as securing orders.
GE Vernova Inc.’s results show a different complication. Its Wind segment recorded a $275 million quarterly EBITDA loss, compared with a $165 million loss a year earlier. Lower onshore equipment deliveries and higher offshore project costs weighed on performance, highlighting how weakness elsewhere can offset part of the power and grid opportunity. Wind losses had already prompted a caller to question Cramer’s commitment to GE Vernova in September. His response also drew a distinction with NuScale Power, revealing what mattered to him beyond the shared promise of rising electricity demand.
Vertiv trades at approximately 31x forward earnings, compared with 47.6x for GE Vernova. Vertiv carries a lower earnings multiple, but both valuations require meaningful future growth. Their different product mixes also limit a direct comparison.
Institutional Participation Moved in Opposite Directions
According to Insider Monkey, Vertiv had 112 hedge fund holders in Q2, up from 96 in Q1. GE Vernova’s count declined to 106 from 118. Short interest was 3.68% of Vertiv’s float and 3.29% of GE Vernova’s. The short positions were relatively similar despite the different changes in fund participation.
Cramer sees Vertiv as an established business benefiting from data center investment, and its profitability supports that distinction. GE Vernova offers broader exposure to electricity infrastructure, alongside challenges in wind.
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