UBS reiterates Buy rating on Vertiv stock, sees AI demand driving growth
#UBS #Vertiv Holdings #Artificial Intelligence #Stock Rating #Data Centers #Liquid Cooling #Investment Analysis
📌 Key Takeaways
- UBS maintained a Buy rating on Vertiv and increased the price target to $135.
- The growth is primarily driven by the massive infrastructure demands of artificial intelligence.
- Vertiv is a market leader in liquid cooling solutions necessary for high-performance AI chips.
- The company's strong order backlog suggests a multi-year growth cycle for data center hardware.
📖 Full Retelling
Investment bank UBS reaffirmed its 'Buy' rating and raised the price target for Vertiv Holdings Co. during a Monday market analysis in New York, citing the company's critical role in providing power and cooling infrastructure for the rapidly expanding artificial intelligence sector. Analysts at the firm increased their valuation of the stock from $115 to $135, signaling a conviction that the market is still underestimating the long-term capital expenditure cycle driven by global AI deployment. The move comes as Wall Street increasingly focuses on the 'back-end' providers of data center hardware that are necessary to support high-performance computing clusters.
According to the analysts, Vertiv is uniquely positioned to benefit from the transition toward liquid cooling technologies, which are becoming a standard requirement for next-generation AI chips like those produced by Nvidia. As these advanced processors generate significantly more heat than traditional CPUs, the demand for sophisticated thermal management systems has surged. UBS highlighted that Vertiv’s robust order backlog and its ability to scale production capacity globally give it a competitive edge over smaller peers in the industrial and electrical equipment markets.
Furthermore, the financial outlook for Vertiv remains strong as the company continues to improve its operational margins and benefit from price increases implemented over the last fiscal year. UBS noted that while the stock has already seen significant gains, the accelerating pace of data center construction provides a sustainable tailwind for several years. This optimism is reflective of a broader trend where investors are shifting focus from software developers to the physical infrastructure companies that enable the foundational hardware of the generative AI revolution to function efficiently.
🏷️ Themes
Economy, Technology, Finance
📚 Related People & Topics
UBS
Multinational investment bank headquartered in Switzerland
UBS Group AG (stylized simply as UBS) is a Swiss multinational investment bank and financial services firm founded and based in Switzerland, with headquarters in both Zurich and Basel. It holds a strong foothold in all major financial centres as the largest Swiss banking institution and the world's ...
Vertiv
American industrial company
Vertiv is an American multinational provider of critical infrastructure and services for data centers, communication networks, and commercial and industrial environments. Headquartered in Westerville, Ohio, Vertiv has ~31,000 employees worldwide, operating in more than 40 countries and with 24 manuf...
Artificial intelligence
Intelligence of machines
# Artificial Intelligence (AI) **Artificial Intelligence (AI)** is a specialized field of computer science dedicated to the development and study of computational systems capable of performing tasks typically associated with human intelligence. These tasks include learning, reasoning, problem-solvi...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’ Gold, silver prices rise amid U.S.-Iran tensions, blowout January payrolls data Dow halts three-day win streak as blowout jobs data curbs rate cut bets Citi pushes back Fed rate cuts to May after blowout January jobs report (South Africa Philippines Nigeria) UBS reiterates Buy rating on Vertiv stock, sees AI demand driving growth Analyst Ratings Published 02/10/2026, 11:10 AM UBS reiterates Buy rating on Vertiv stock, sees AI demand driving growth 0 VRT 24.56% Investing.com - UBS has reiterated a Buy rating and $217.00 price target on Vertiv Holdings Co. (NYSE:VRT), expressing optimism ahead of the company’s upcoming earnings report scheduled for February 11. This aligns with the broader analyst consensus, which stands at a strong 1.48 (where 1 is Strong Buy). The investment firm remains positive on Vertiv despite the stock’s recent surge to all-time highs, citing significant potential for further upside based on strong demand indicators from the technology sector. The stock has delivered an impressive 60.85% return over the past year and currently trades at $200.59, just below its 52-week high of $208.43. UBS points to recent capital expenditure disclosures from technology companies that suggest orders above $4 billion in the fourth quarter, with potential for orders to reach $20 billion in 2026. This outlook supports InvestingPro data showing Vertiv’s robust revenue growth of 28.76% over the last twelve months, with analysts forecasting continued strong growth this year. The firm’s analysis indicates that if orders translate to revenue one year later, as has been the pattern for the last three years, Vertiv’s revenue could reach approximately 40% above the 2027 consensus estimates. Based on this upside scenario, UBS calculates that Vertiv shares are trading at less than 20 times 2027 earnings per share, suggesting room for addit...