David Prince
US Equity/Options Fund Manager, Mentor at T3 Live
Vertiv's growth and cash flow make its valuation the better risk/reward than Bloom Energy at these prices. It is the one I'd buy first for a long-term hold: 23x next year's earnings with 37% EPS growth, nearly $3B in free cash flow and almost no net debt. Adjusted operating profit of $1.087B topped the $938M guidance ceiling; revenue and EPS also beat estimates. x.comÂ
Vertiv's surging orders and Q3 growth show AI infrastructure demand exceeding expectations. Per WallStEngine, revenue rose 61% to $4.3B, adjusted EPS rose 78% to $2.21, organic orders grew more than 100%, and FY26 guidance was raised above estimates. Vertiv is delivering into accelerating demand for its power and cooling equipment. x.com x.comÂ
Vertiv is investable only on pullbacks because its valuation is borderline rich. Fundamentals are elite: Q2 sales rose 24.1% to $3.27 billion, adjusted operating margin reached 22.6%, it has net cash and a $15 billion backlog. But GuruFocus puts fair value at $157.57 versus a $223.58 price, and the P/E of about 65x is well above the industry's 37x. Red flags include fraud investigations after the post-earnings drop, reliance on hyperscaler capex and project-timing risk. x.comÂ
Vertiv's broad earnings beats strengthen the case that it can scale profitably despite execution risk. Revenue grew 61.2% year over year versus 40.1% expected, and operating margin reached 25.2% versus 24.6% expected. Full-year guidance of $14.65B in revenue and $7.15 in EPS exceeds estimates of $14.008B and $6.73. x.comÂ
Vertiv is a great company that should be a long-term winner even if it struggles short term. In the near term there is cautious optimism that it holds its new floor in the $250s. Its market cap is too high for personal buying right now, though. x.comÂ
Vertiv's 49x forward multiple leaves no room for error: demand is fine, but the valuation isn't. It beat on EPS and raised full-year guidance yet fell 11% on one soft revenue line tied to lumpy project timing. x.comÂ
Vertiv's demand is accelerating, so GLJ Research's $188 target against a $255 stock and a consensus near $350 looks badly wrong. Vertiv's orders doubled and deferred revenue just posted the biggest jump in company history; customers prepaying at records is not how a cyclical downturn starts. GLJ's similar sell call on GE Vernova as a cyclical turbine maker failed: the stock now trades above $1,000, over double its target, and its CEO is selling delivery slots for 2032. x.comÂ
Vertiv should beat and keep raising 2026 guidance because AI data center demand still exceeds supply. The proprietary pipeline added 50+ GW in 1Q26, 415 GW in the US since January 2023. Even flat orders near $18 billion would lift backlog from $15 billion to about $18 billion, implying about $25 billion of 2027 sales versus the Street's $16.9 billion. Base EPS of $6.75/$9.50 for 2026/27 tops the Street at a PEG under 1x. Margins are the watch item; the big run makes the print less attractive. … Show more
AI infrastructure names such as Vertiv, Bloom Energy and Sterling are an attractive, asymmetric short because slowing data-center builds should slow their order growth. Semis are historically overbought, a $200 billion company jumped 40% on its CEO calling it undervalued, companies may start rationalizing AI spend, Anthropic's revenue acceleration could slow, and a $1.5 trillion space IPO looms. Any waning momentum could cause severe unraveling. This is a high-conviction playbook into September. … Show more
Vertiv is likely to do well as the AI buildout expands, and the market is making the same mistake on it twice; it remains a buy. x.comÂ