It's well known that the artificial intelligence (AI) boom depends critically on the availability of cutting-edge graphics processing units (GPUs) and the rollout of advanced AI models. However, what typically flies under the radar is the need for reliable infrastructure, including power delivery and cooling systems, to keep data centers running and bring new capacity online quickly.
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That's why Vertiv (VRT +1.13%) is emerging as a prominent "picks-and-shovels" AI infrastructure player, with its liquid-cooling systems designed for high-performance data centers. These thermal management solutions help data centers run efficiently by preventing overheating, performance degradation, and costly hardware downtime.
Here's why this relatively less-talked-about stock can generate a healthy return on a $1,000 investment, if you don't need these funds to pay bills or for contingencies.
Growth trajectory
Vertiv exited the third quarter with a 1.4x book-to-bill ratio (orders received versus invoices issued) and $9.5 billion backlog, highlighting its strong revenue visibility heading into 2026. The company is focusing on upgrading its liquid-cooling portfolio to support rising demand from denser server racks (more computing power within the same physical space) and increasingly complex thermal requirements in AI-focused facilities.
NYSE: VRT
Key Data Points
Vertiv also offers services such as predictive analytics, remote monitoring, and energy optimization, with a global field footprint comprising over 4,400 engineers. As the complexity of AI workloads increases, these services can become a significant competitive advantage for Vertiv, helping build a sticky customer base and unlocking the potential for recurring revenue beyond one-time equipment sales.
Vertiv now expects engineering, research, and development spending to increase by over 20% in 2026. The company's prefabricated and modular liquid-cooling solutions shorten deployment timelines and help bring new capacity online rapidly. Vertiv has also planned for an 800-volt direct current (DC) portfolio in the second half of 2026, in alignment with Nvidia's rollout of Rubin Ultra platforms in 2027.
The stock currently trades at 35.2 times forward earnings, which looks steep. However, if AI data center expansion continues over the next few years, Vertiv should grow in tandem, making the stock a smart long-term pick now.
