Vertiv seen gaining on AI data center demand, BMO starts coverage with outperform

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Vertiv gains on AI demand

Highlights

BMO Capital Markets initiated Vertiv with an outperform rating and a $329 price target, implying 30% upside from Friday's close.
Vertiv management estimates its $75 billion total addressable market is expanding 16–18% annually, with data center growth projected at 18–20% per year.
Vertiv shares have risen nearly 56% year to date, driven by strong investor demand for AI-focused data center infrastructure companies.

BMO outlines upside case for Vertiv

As reported by CNBC, BMO Capital Markets initiated coverage of Vertiv on Sunday with an outperform rating and a $329 price target, implying about 30% upside from Friday's close.

Analyst Daniel DiCicco said the company, which supplies digital infrastructure and hardware for data centers and other facilities, gets about 85% of its revenue from data centers. He described Vertiv as a premium data center play and said the stock, despite rising more than 900% over the last five years, now offers an attractive entry point after pulling back from its May peak.

In a note to clients, DiCicco said Vertiv is well positioned as data centers increase in scale and intensity, with more power required per rack and stronger demand for resilience and faster deployment. He also said the company is one of the few providers able to deliver a fully integrated power and thermal management solution across the full data center environment.

Data center spending supports sector outlook

Broader market data is also reinforcing the case for continued growth in digital infrastructure. There are more than 4,700 data centers in the United States, and commercial real estate firm Avison Young said $6 billion was spent on U.S. land purchases for future data centers in the first half of 2026, up 79% from a year earlier.

DiCicco said Vertiv management estimates its $75 billion total addressable market is expanding by 16% to 18% annually, with data centers growing 18% to 20% a year. He added that those long-term growth forecasts could prove conservative, especially as innovation, standardization, service growth and integrated systems lift current data center content rates above the present $3.25 to $3.75 per megawatt range.

Vertiv shares are up nearly 56% year to date, reflecting sustained investor interest in companies exposed to AI-linked data center buildouts.

In our earlier article, we examined how options traders were positioning around Nvidia potentially reaching a $6 trillion market capitalization by the end of October as AI demand continued to fuel bullish sentiment. We also noted that while momentum remained strong, the distribution of options probabilities pointed to elevated volatility and some caution about how far the rally could extend in the near term.

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