Analysts at JR Research have upgraded Vertiv Holdings Co. to a Buy rating, citing a sharp acceleration in orders for critical power and thermal management equipment from hyperscale cloud providers and AI-focused enterprises. In the past quarter, Vertiv secured multiple multi-million-dollar contracts to deploy uninterruptible power supplies (UPS) and precision cooling systems in three North American AI data centers, representing a 35% year-over-year increase in backlog tied to machine learning workloads.

Vertiv is expanding its liquid cooling portfolio, recently completing a pilot deployment of its Liebert® iCOM™ liquid immersion racks at a major West Coast AI research facility. The company forecasts that liquid cooling solutions will account for 20% of its data-center revenue by fiscal 2027, up from 8% in fiscal 2024. Concurrently, Vertiv has entered a partnership with a leading generator manufacturer to co-develop modular on-site power plants capable of delivering up to 10 MW of continuous power, targeting locations where grid reliability is a concern and enabling customers to reduce downtime risk by an estimated 50%.

Although Vertiv trades at a forward EBITDA multiple above 23x—reflecting investor appetite for AI-infrastructure plays—the stock’s PEG ratio stands at 1.33. This indicates that projected earnings growth of roughly 17% per year through 2028 is priced at a modest premium. The PEG ratio compares favorably to peer averages of 1.8 to 2.1 in the data-center equipment sector, suggesting that Vertiv’s growth trajectory and reduced execution risk justify its current valuation.

Management has lowered full-year guidance for capital expenditure on non-AI products by $50 million, reallocating resources toward its core AI infrastructure roadmap. With gross margins on AI-related offerings running 300 basis points higher than legacy products, Vertiv expects to improve overall margin by 150 basis points in fiscal 2026. Investors should watch order conversion rates—recently rising to 82% from 74% a year ago—and supply-chain stabilization initiatives that aim to cut lead times for critical components by 20% over the next 12 months.