Microsoft and Oracle Can't Cool AI Data Centers Without This Growth Stock. Here's Why It Could Soar.

Microsoft and Oracle are rapidly expanding their artificial intelligence (AI) data center infrastructure, driven by substantial contractual commitments. This aggressive growth is evident from their commercial remaining performance obligations (RPO), which have surged by 73% and 209% respectively, indicating a significant increase in orders.

Consequently, both tech giants are ramping up their capital expenditures to support the construction of more data centers. While chips are essential, the cooling systems in these AI data centers are equally crucial, given the high power consumption of GPUs. The global data center cooling market is projected to grow from $18 billion to $141 billion by 2036.

Vertiv Holdings (VRT), a key player in the AI infrastructure ecosystem, stands to benefit immensely from these investments. The company's latest results demonstrate the growing demand for its cooling systems, with a 61% year-over-year increase in revenue and a 78% rise in non-GAAP earnings per share. Notably, Vertiv's organic orders surged by 100% year-over-year, leading to an increased 2026 revenue guidance of $14.65 billion, a 43% rise from the previous year.

Vertiv is poised to double its production capacity of chilled water cooling systems by year-end, positioning itself to capture the rapidly growing data center cooling market. With its forward earnings multiple currently at 25, compared to the Nasdaq Composite's 40, Vertiv appears to be a promising investment opportunity. Assuming the stock trades at 35 times forward earnings with per-share earnings reaching $12.50 by 2028, its price could surge to $437, representing a 95% upside from current levels.