Key Points
Vertiv (NYSE: VRT), a leading provider of data center cooling equipment, has partnered with Nvidia to supply advanced liquid-cooling systems for data centers, a collaboration initiated last month. The company has seen substantial growth, with new orders rising 252% and its backlog increasing 109% to $15 billion in the fourth quarter of 2025. Notably, Vertiv reported organic sales growth of 26% for the year and a diluted earnings per share growth of 166% over 2024.
In terms of market impact, the data center cooling industry is projected to grow at a compound annual growth rate (CAGR) of 22.3%, reaching $128.31 billion by 2033, highlighting the vital role of cooling technologies as the demand for AI and related technologies rises. Vertiv currently maintains a 13% net profit margin and a favorable debt-to-equity ratio of 0.82, with analysts rating its stock as a buy due to its low price-to-earnings-to-growth ratio of 0.86, indicating potential undervaluation amid its recent growth.
