Can Vertiv (VRT) Maintain Its Momentum Amid Intense Data Center Competition?

The artificial intelligence infrastructure boom is reshaping the data center landscape, and Vertiv Holdings VRT is positioned as a critical beneficiary. With organizations worldwide racing to build AI-capable data centers, Vertiv’s infrastructure solutions—spanning thermal management, power systems, and cooling technologies—are in high demand.

The Growth Engine: AI-Driven Infrastructure Expansion

The numbers tell a compelling story. In Q3 2025, Vertiv delivered organic sales growth of 43% in the Americas and 21% year-over-year in APAC. The company’s order book paints an even rosier picture: trailing 12-month organic orders surged approximately 21%, with a book-to-bill ratio of 1.4x in Q3 2025. This metric signals robust future revenue visibility. The backlog expanded 12% sequentially and climbed 30% year-over-year to $9.5 billion—underscoring unprecedented demand for data center buildouts.

This expansion reflects more than cyclical demand. The shift toward AI workloads requires next-generation cooling and power distribution infrastructure. Vertiv’s diversified portfolio—which includes thermal systems, liquid cooling solutions, uninterruptible power supplies (UPS), switchgear, busbar systems, and modular infrastructure—positions it at the center of this transition.

Strategic Acquisitions Fuel Competitive Advantages

Vertiv strengthened its technological moat through acquisitions. The $1.0 billion acquisition of PurgeRite exemplifies this strategy. By integrating PurgeRite’s specialized flushing, purging, and filtration capabilities with Vertiv’s thermal expertise, the company enhanced its liquid cooling offerings for high-performance computing and AI data centers. These integrated solutions address a critical pain point: ensuring system reliability and performance under the thermal stress of AI workloads.

Competitive Pressures Mount

Yet the data center infrastructure space is becoming increasingly crowded. Super Micro Computer SMCI is aggressively expanding its footprint with end-to-end AI rack-scale systems that bundle compute, networking, storage, and liquid cooling—eliminating the need for multiple vendors. Hewlett Packard Enterprise HPE is similarly advancing through its HPE Cray and ProLiant server lines, paired with liquid-cooled solutions and high-speed interconnects.

Both competitors are directly challenging Vertiv’s traditional role as a specialized infrastructure enabler, potentially fragmenting the power, cooling, and management services market.

Valuation and Market Sentiment

VRT shares have surged 61.3% over the past six months, dramatically outpacing the Zacks Computer & Technology sector’s 26.6% gain and defying the Zacks Computers - IT Services industry’s 8.1% decline.

However, valuation metrics suggest caution. VRT trades at a trailing 12-month Price-to-Book ratio of 19.44x, compared to the sector average of 10.81x—a significant premium. The stock carries a Zacks Value Score of F, indicating limited margin of safety at current prices.

Earnings expectations remain steady. The consensus estimate for 2025 earnings stands at $4.11 per share, unchanged over the past month, representing a 44.21% increase from 2024’s reported earnings. This projection supports current valuations but leaves little room for disappointment.

The Verdict: Strength Tempered by Valuation Concerns

Vertiv holds a Zacks Rank #1 (Strong Buy) designation, reflecting analyst optimism about its growth trajectory in the AI-driven data center market. The company’s expanded backlog, strong organic growth rates, and strategic acquisitions justify positive sentiment.

Yet investors seeking upside should weigh the premium valuation against the competitive intensity in the sector. While Vertiv’s operational momentum remains compelling, the path to sustainable outperformance depends on maintaining market share against increasingly capable competitors while justifying its elevated price-to-book multiple through continued earnings acceleration.