Vertiv Backlog Hits $9.5B on AI Data Center Demand

Edgen Stock·Jan 21 2026, 22:53

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Key Takeaways

Vertiv is capitalizing on the global AI build-out, reporting strong sales growth and a massive order backlog for its data center infrastructure. While the company's stock has outperformed, it faces intensifying competition from rivals also expanding their AI-focused product lines.

Vertiv's backlog grew 30% year-over-year to $9.5 billion, driven by a 28% increase in organic sales during the third quarter of 2025.
New modular solutions like the MegaMod HDX are designed to support high-density AI deployments with rack densities exceeding 100 kW.
Competition is increasing from Super Micro Computer (SMCI) and Hewlett-Packard Enterprise (HPE), which are expanding production and launching new AI-focused ventures.

Vertiv's Backlog Swells to $9.5B on 28% Sales Growth

Vertiv is experiencing significant growth fueled by the global demand for AI infrastructure, reporting a 30% year-over-year increase in its backlog to $9.5 billion. This provides strong revenue visibility for 2026. The company's performance was highlighted in its third-quarter 2025 results, where organic sales climbed 28%. Growth was particularly strong in the Americas, which saw a 43% increase, and the APAC region, with 21% growth. For the fourth quarter of 2025, Vertiv projects revenues between $2.81 billion and $2.89 billion, representing organic sales growth of 18% to 22%.

New AI Solutions Target High-Density 100kW+ Racks

To meet the intense power and cooling needs of modern AI systems, Vertiv has launched new configurations of its MegaMod HDX prefabricated power and cooling solutions. These modular systems are engineered for high-density computing, supporting rack densities greater than 100 kW and power capacities from 1.25 MW to 10 MW. The products integrate direct-to-chip liquid cooling and are factory-tested to accelerate deployment times for large-scale AI infrastructure projects. This strategic product expansion directly addresses the technical challenges posed by AI and high-performance computing (HPC) deployments.

Competition Intensifies as Stock Valuation Hits 19.09X P/B

While Vertiv's stock has gained 39.9% over the past six months, significantly outpacing the broader technology sector's 16.8% rise, it faces mounting competition. Super Micro Computer (SMCI) is aggressively expanding its global footprint with new facilities in Taiwan, the Netherlands, and Malaysia, aiming to produce 6,000 racks per month. Meanwhile, in December 2025, Hewlett-Packard Enterprise (HPE) expanded its partnership with NVIDIA to create an AI-focused lab in France. This competitive pressure exists as Vertiv's stock trades at a premium valuation, with a Price-to-Book ratio of 19.09, compared to the sector average of 10.74, indicating high investor expectations are already priced in.