Loop Capital sees AI Infrastructure boom driving growth for Vertiv Holdings
Investing.com -- Loop Capital has initiated coverage of Vertiv Holdings Co with a “Buy” rating and a $500 price target, arguing the company is positioned at the center of what analysts describe as an emerging “AI infrastructure super-cycle.”
The research note, led by Managing Director Ananda Baruah, framed Vertiv not as a traditional industrial equipment provider, but as a critical technology enabler for the next generation of artificial intelligence data centers. The firm believes demand for AI-related compute infrastructure will accelerate sharply through 2028, significantly increasing spending on power management and cooling systems — Vertiv’s core business.
Loop Capital estimates Vertiv’s addressable AI data center revenue opportunity could expand nearly sevenfold between 2023 and 2028 as hyperscalers and enterprises ramp investment in AI factories and accelerated computing infrastructure. The report forecasts AI accelerator deployments growing from roughly 9 million units in 2025 to 29 million by 2027.
The analysts project that global AI infrastructure spending could reach approximately $2 trillion annually by 2028, driven by surging demand for high-performance GPUs and custom AI silicon. Much of that demand is expected to come from major cloud providers including Microsoft, Amazon, Alphabet, and Meta Platforms.
According to the report, the rapid increase in GPU power density is creating major challenges around electricity delivery and cooling efficiency inside data centers. Modern AI racks powered by chips such as NVIDIA’s Blackwell and upcoming Rubin architectures are consuming dramatically more power than previous generations, accelerating adoption of liquid cooling systems and high-voltage power infrastructure.
Loop Capital highlighted Vertiv’s strategic partnership with NVIDIA, including joint development of advanced 800-volt DC power architectures designed for next-generation AI racks exceeding 600 kilowatts.
The report also pointed to Vertiv’s growing portfolio of prefabricated AI data center modules, which are designed to shorten deployment times and simplify integration of power, cooling, and networking systems. The analysts said these factory-built solutions could become increasingly important as hyperscalers race to expand AI capacity.
Loop Capital expects Vertiv to materially outperform Wall Street consensus estimates over the next several years. The firm forecasts revenue climbing to $19.3 billion in 2027 and $25.1 billion in 2028, above current Street expectations. Adjusted earnings per share are projected to rise to $13.70 by 2028.
The analysts argue that Vertiv’s premium valuation is justified by its unusually high exposure to the data center market, which now accounts for approximately 85% of company revenue.