Vertiv Soars 64% in 2026, Wall Street Still Buys—Is It Top AI Infrastructure Stock?

The Growing Importance of Data Center Cooling

Artificial intelligence (AI) has taken the world by storm, revolutionizing industries and reshaping how we interact with technology. However, while much attention is given to AI’s capabilities, one critical aspect often goes unnoticed: the immense heat generated by AI systems.

Heat management is a vital concern for any computing system, especially for high-performance hardware like AI chips. As reported by Marketplace, AI chips can operate at temperatures as high as 70 to 80 degrees Celsius (175 degrees Fahrenheit). This level of heat not only poses risks to the hardware but also affects the surrounding environment. Research from Arizona State University indicates that data centers can raise the temperature of nearby communities by up to 2.5 degrees Fahrenheit.

Given these challenges, keeping data centers cool is essential for both the longevity of hardware and the comfort of nearby residents. This need for efficient cooling solutions has become a significant opportunity in the tech industry, and companies like Vertiv are leading the charge.

Vertiv: A Leader in Data Center Cooling

Vertiv has been a key player in the data center cooling industry for over 60 years. Its product line includes a comprehensive range of cooling solutions, such as data center air conditioning systems, in-rack cooling systems for processors, and thermal management systems. These products ensure that computing hardware operates within safe temperature ranges.

One of Vertiv’s most recent and notable partnerships is with Nvidia. This collaboration involves providing advanced liquid-cooling systems for use in Nvidia’s data centers. This partnership highlights Vertiv’s role in supporting the next generation of high-performance computing infrastructure.

In addition to its work with Nvidia, Vertiv has partnered with other major companies. For example, Equinix, a leading data center real estate investment trust (REIT), has worked with Vertiv on various projects, including redesigning power supply systems and developing fuel cells for data centers. Caterpillar also partnered with Vertiv in November 2025 to provide cooling solutions for its own data centers.

Vertiv OneCore and SmartRun Solutions

Vertiv has developed several innovative solutions to meet the growing demand for efficient cooling. One such offering is Vertiv OneCore, an end-to-end data center solution designed to standardize cooling setups and simplify management. Another key component is the SmartRun power and liquid cooling container, which is part of the OneCore system. This factory-built solution is shipped complete to data centers for easy installation.

These innovations position Vertiv as a leader in the data center cooling market, which is expected to grow significantly in the coming years. According to Grand View Research, the market is projected to expand at a compound annual growth rate (CAGR) of 22.3% from 2026 to 2033, reaching $128.31 billion by 2033.

Strong Financial Performance

Vertiv’s financial performance further strengthens its case as a compelling investment. In the fourth quarter of 2025, the company saw new orders increase by 252%, and its backlog grew by 109% to $15 billion. Over the entire year of 2025, Vertiv experienced organic sales growth of 26% compared to 2024, and its full-year diluted earnings per share (EPS) rose by 166% from the previous year.

The company currently maintains a 13% net profit margin and a strong balance sheet with a total debt-to-equity ratio of 0.82. Additionally, Vertiv’s price-to-earnings-to-growth (PEG) ratio is just 0.86, indicating that it may be undervalued relative to its future earnings potential.

Should You Invest in Vertiv?

While Vertiv’s impressive growth and strong financials make it an attractive option, investors should consider their own risk tolerance and investment goals. Some analysts, such as those from The Motley Fool Stock Advisor, have identified other stocks they believe offer even greater potential for returns.

Despite this, Vertiv’s decades of experience, strategic partnerships, and solid financial foundation make it a strong contender in the AI infrastructure space. With the increasing demand for efficient cooling solutions, Vertiv is well-positioned to capitalize on the growth of the data center cooling market.