Vertiv could surge as AI data center cooling demand rises
Microsoft reported a $677 billion commercial remaining performance obligation for Q1 fiscal 2027, up 73% year‑over‑year, and said it will spend more than $50 billion on capital this quarter, up from $45.2 billion. Oracle disclosed a $664 billion RPO, an increase of $209 billion, and plans to raise capital spending to $90‑$95 billion, up from $55.7 billion.
Key points
- Microsoft reports $677 billion commercial RPO, up 73%, and plans >$50 billion capital spend this quarter.
- Vertiv Q3 2026 revenue rose 61% to $4.3 billion, EPS $2.21, and raised 2026 revenue guidance to $14.65 billion.
- Global AI data‑center cooling market projected to grow from $18 billion to $141 billion by 2036, boosting Vertiv prospects.
Vertiv Holdings, which makes power and thermal‑management equipment, saw third‑quarter 2026 revenue jump 61% to $4.3 billion and non‑GAAP earnings per share rise 78% to $2.21. Organic orders doubled, prompting the company to lift its 2026 revenue outlook by $650 million to $14.65 billion and project adjusted EPS of $7.15, a 70% increase. Analysts note Vertiv trades at about 25 times forward earnings, well below the Nasdaq’s ~40‑times multiple, and estimate a potential stock price of $437 by the end of 2028, implying roughly 95% upside.
Microsoft and Oracle Can't Cool AI Data Centers Without This Growth Stock. Here's Why It Could Soar.
fool.com · 3 November 2026
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