For many of the past two years, NVIDIA has been the largest player in the city with regard to processors in the data center.
The graphics processing units (GPU) are among the most important types of equipment that underpins the revolution in artificial intelligence (AI). Between them, Nvidia And Advanced micro-apparents essentially have the market for these advanced parallel transformation chipsets – data centers Throughout the world, the goods of these two semiconductor specialists.
Although this is good news for NVIDIA and AMD, there are other opportunities in the field of the data center that I think that many investors neglect. Such an opportunity is Verte (VRT 2.11%))A stock that should really be on your radar while Big Tech investments in AI infrastructure continue to develop.
What makes Vertiv Unique?
One can imagine that the GPUs were like an engine of a car; They provide the necessary computing power to train and execute AI models. In this analogy, data centers can be considered as the body of the vehicle. These are essentially huge storage units which house large paintings of servers racks, each of which is in turn equipped with loads of flea clusters.
The power that these sites consume are enormous. According to a report by the Ministry of Energy, data centers represented around 4% of American electricity in 2023. But it expects consumption levels to be tripled by 2028 – when they plan. One of the main factors influencing this growing demand? Ai, of course.
But it is not only the treatment that draws all this electricity. A working GPU server becomes hot – and too much heat reduces the performance of fleas and their lifespan. Servers and data centers must therefore be kept in the fridge.
Today, temperatures are generally controlled in data centers thanks to traditional methods such as fans and air conditioning systems. Vertiv provides a range of equipment for the construction of data centers, but a field in which it specializes is a emerging technology known as liquid coolingAnd it grows.
The graph illustrates the trends in Vertiv income in the last quarters. The slope of the company’s income growth breaks at a considerable pace – but this is where this growth comes from what excites me the most.
VRT returned (quarterly) data by Ycharts.
During the recall of the company’s third quarter results in October, CEO Giordano Albertazzi said that he was “very encouraged by the acceleration of liquid cooling income” and described it as “visible contributor” to the recent growth of the company.
Since the company’s order book has increased by 37% in the last 12 months, I include agreeing with Albertazzi.
Vertiv should benefit from the rear winds of IA infrastructure
After companies experience exponential growth phases, it becomes more difficult for them to impress investors. That said, I don’t think Vertiv even struck his stride.
In recent weeks, a number of important announcements have been made linked to AI infrastructure expenses. To begin with, the CEO of Openai, Sam Altman, joined Oracle‘s Larry Ellison and Softbank ‘S son of Masayoshi at the White House shortly after the inauguration of President Trump to announce the formation of an AI infrastructure project of $ 500 billion called Stargate. This news exploded simultaneously with Microsoft announcing a $ 80 billion data center project of himself, and Meta-platforms presenting a Expenditure project of $ 65 billion on the infrastructure linked to AI.
I consider the increase in capital expenditure of hyperscalers as a major back wind for long -term vert. However, there is a great development to consider before picking up the Vertiv shares at the moment.


Image source: Getty Images.
Is Vertiv Stock a purchase right now?
In the past few days, you have probably heard of a new AI start-up in China called In depth. To summarize, Deepseek has built a generative AI model intended to compete with the Openai Chatppt.
The Deepseek team says it has formed their model using chips inherited from Nvidia rather than advanced GPUs – a concept that caused generalized chaos on the capital markets. In theory, if Deepseek is as powerful as it claims, then new rival models could also be developed and powered using less expensive equipment. In this case, technological companies may not need to spend almost as much capital as they owed it on the last GPUs and new data centers.
The way this situation will actually take place is not yet clear. Among investment bankers, Wall Street research analysts and technology enthusiasts, there are a multitude of variable opinions on Deepseek and its capacities. Furthermore, there are a lot of contradictory relationships concerning the construction of Deepseek its model. There is an existing scenario that the model has been built using more sophisticated equipment than initially expected.
The reason why this is important is that the introduction of Deepseek could Inspire Big Tech to reduce their capital expenses (that is, infrastructure budgets). If this happens, I would expect vevial activities to also experience a form of deceleration.
Currently, Vertiv exchanges to a Price in the future (P / e) ratio of 30. It is a little higher than the means of the means of S&P 500 (Snpindex: ^ GSPC)which is about 24.
In a world where Deepseek did not exist, I would say that Vertiv deserved a bonus, given the rear winds of the increase in IA infrastructure expenses. But given the contrary scenarios and the deployment details concerning Deepseek, it has become more difficult to predict how hyperscalers will spend in terms of nearby.
For the moment, I think that the prudent strategy is to listen to Big Tech income calls and pay particular attention to their plans for IA infrastructure expenses. From there, the cross references of this information with the advice offered by Vertiv during its call for results in the fourth quarter in early February should help to clarify what the company’s prospects look like.
Randi Zuckerberg, former Director of Development of the Facebook and Sister of the CEO of Meta Platforms, Mark Zuckerberg, is a member of the board of directors of Motley Fool’s. Adam Spatacco has positions in Meta, Microsoft and Nvidia platforms. The Motley Fool has positions and recommends micro advanced devices, Meta, Microsoft, Nvidia and Oracle platforms. The Motley Fool recommends the following options: Long January 2026 Calls $ 395 on Microsoft and Court January 2026 405 $ calls Microsoft. The Word’s madman has a Disclosure policy.