What Happened?
Shares of data center products and services company Vertiv (NYSE:VRT) jumped 3.5% in the afternoon session after the company introduced new configurations of its modular power and liquid cooling system to support the growing demands of artificial intelligence (AI) and high-performance computing.
This positive development was bolstered when RBC raised its price target on the stock to $200 from $196, while keeping an Outperform rating. Vertiv's new prefabricated system targets the high-density computing environments needed for AI deployments. The product launch aligned with the company's recent report that highlighted AI-driven trends shaping the next generation of data centers. The intense investment in AI created a significant need for the kind of critical digital infrastructure Vertiv provides, leading to strong demand for its power and cooling technology.
After the initial pop the shares cooled down to $175.43, up 2.7% from previous close.
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What Is The Market Telling Us
Vertiv’s shares are extremely volatile and have had 48 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock gained 8.5% on the news that Barclays upgraded the stock to 'Overweight' from 'Equal-Weight' and raised its price target, citing higher earnings estimates.
The bank increased its price target on Vertiv, a provider of data center power and cooling solutions, to $200 from $181. Barclays noted that its earnings per share estimates for 2026 and 2027 were significantly above the consensus on Wall Street. The firm also suggested that a recent dip in the stock's price had created an attractive buying opportunity. The positive view was shared by other analysts, with both Goldman Sachs and Citi also having increased their price targets. Adding to the bullish sentiment was the growing expectation that Vertiv could be added to the S&P 500 index in the first quarter of 2026.
Vertiv is flat since the beginning of the year, and at $175.43 per share, it is trading 12% below its 52-week high of $199.27 from October 2025. Investors who bought $1,000 worth of Vertiv’s shares 5 years ago would now be looking at an investment worth $8,992.
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