Vertiv's (VRT 1.19%) liquid-cooling solutions are a vital backbone of AI infrastructure. Without the company's cooling technology, AI chips would quickly overheat and become useless. Although Vertiv isn't the only company that provides liquid cooling solutions, it is one of the few that is exclusively focused on AI infrastructure and has a direct partnership with Nvidia (NVDA 0.47%).
That's just scratching the surface of what makes Vertiv a wealth multiplier for long-term investors. It has certainly lived up to that description, with a 775% return over the past five years, but more gains appear to be right around the corner for these reasons.
The Nvidia partnership is a big deal
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Vertiv's partnership with Nvidia allows the liquid-cooling solutions provider to work directly with Nvidia for upcoming AI chips. Whenever Nvidia releases a new chip, it is telling the world that Vertiv's technology can keep it up and running.
Tech companies in the AI industry value speed and aren't afraid to throw money at proven providers. Vertiv's status as a pre-certified vendor for AI infrastructure makes it the easy choice for many companies that are comfortable paying more for a guaranteed solution than skimping costs for a liquid cooling solution that may not work.
Investors can see the results of this competitive advantage in Vertiv's Q3 2025 earnings. The company saw a 60% year-over-year increase in organic orders and raised full-year guidance for net sales and other metrics.
NYSE: VRT
Key Data Points
The AI boom isn't going anywhere
Vertiv's substantial five-year gain aligns with the rising demand for artificial intelligence. If tech companies no longer needed AI or cut their spending, it would hurt Vertiv stock. However, neither of those scenarios is probable.
Artificial intelligence has become the foundation for many companies. Amazon uses the technology to optimize its online marketplace to make personalized product recommendations. Alphabet uses AI to improve its search engine results. Meta Platforms also leverages AI to display more optimal ad campaigns to each user.
That's just for their core products. All three of those companies use AI for other segments as well, and some companies, like ChatGPT, would not have been possible without artificial intelligence.
Many tech companies have committed to increased AI spending this year compared to last, with some tech giants announcing multiyear plans that extend past the 2030s. The AI boom is still in its early innings, and that's a great sign for Vertiv investors who want compounded returns.
The EMEA AI buildout should expand
All of the "Magnificent Seven" stocks are located in the U.S., which is why more than 60% of Vertiv's revenue comes from the Americas. The company's Q3 results demonstrate that it is also gaining ground in the Asia-Pacific (APAC) market, with revenue up by 20.2% year over year in those countries.
The Europe, Middle East, and Africa (EMEA) market is the only concern, with revenue only up by 0.2% year over year in that region. However, this trend of low growth won't last forever.
Vertiv told investors in its third-quarter earnings presentation that it expects AI infrastructure deployment in EMEA to "accelerate in 2026." It's easy to take Vertiv at its word, given the results it has already produced for investors.
Its status as a Nvidia partner can also help it gain more market share in EMEA in 2026. This development would give Vertiv another high-growth opportunity that can translate into attractive long-term gains.
