It's no secret that the AI/data center sector has been running hot this year. While that's excellent news for technology stocks like Nvidia, investors should also consider buying into "old economy" stocks, such as power systems and thermal management company Vertiv (VRT 7.11%). The improving data center market is manifesting itself in Vertiv's positive sales outlook through 2025. With that momentum likely to carry on into 2026 and beyond, the stock represents a great way to get exposure to the AI/data center theme.
Vertiv and data centers
The company develops, manufactures, and sells power systems to data centers, communication networks, and commercial and industrial customers. Formerly the Network Power business of Emerson Electric, the company was sold to private equity in 2016, only to go public again in 2020.
Likely, both Emerson Electric and the private equity company that owned Vertiv will regret divesting the business now that it has caught the wave of investment in the AI/data center space. That wave carried Vertiv's organic orders higher by 15% on a year-over-year basis in the second quarter and also up 11% sequentially from the first quarter of 2025.
Image source: Getty Images.
Where next for Vertiv
Moreover, its book-to-bill ratio of 1.2 times implies significant future growth. Indeed, Wall Street analysts project Vertiv's sales to grow by 25% in 2025, followed by 16.6% in 2026. Still, it's essential to note that there appears to be no slowing down in the capital spending plans of data center hyperscalers. The recent deal between OpenAI and Oracle to invest $300 billion in computing power from Oracle underscores the potential for further growth. As AI applications continue to gain increasing adoption, the outlook for data center infrastructure stocks, such as Vertiv, is likely to improve.
