Loop Capital began coverage of Vertiv Holdings Co with a Buy recommendation and a $500 price objective, positioning the company as a central supplier to an expanded AI-driven data center market. The research, led by Managing Director Ananda Baruah, frames Vertiv not merely as an industrial-equipment seller but as a technology enabler for next-generation artificial intelligence facilities.
The report argues that spending tied to AI compute infrastructure will accelerate markedly through 2028, increasing demand for Vertiv's core offerings in power management and cooling. Loop Capital estimates the vendor's addressable AI data center revenue opportunity could grow nearly sevenfold between 2023 and 2028 as hyperscalers and enterprise customers expand investments in so-called AI factories and accelerated computing platforms.
As part of that thesis, the analysts forecast that AI accelerator deployments will rise significantly, from roughly 9 million units in 2025 to about 29 million by 2027. Loop Capital projects that global AI infrastructure spending could reach approximately $2 trillion per year by 2028, with much of the incremental demand coming from large cloud providers including Microsoft, Amazon, Alphabet, and Meta Platforms.
The research note emphasizes technical trends that are creating an urgent need for upgraded power and cooling architectures. Modern AI racks, powered by high-performance chips such as NVIDIA's Blackwell and anticipated Rubin architectures, consume far more power than previous generations. That increase in GPU power density is driving faster adoption of liquid cooling systems and higher-voltage power distribution inside data centers.
Loop Capital highlighted Vertiv's strategic collaboration with NVIDIA, describing joint efforts to develop advanced 800-volt DC power architectures intended for next-generation AI rack designs that surpass 600 kilowatts per rack. The firm also pointed to Vertiv's expanding suite of prefabricated AI data center modules, which are factory-built solutions meant to accelerate deployment and simplify integration of power, cooling, and networking systems for large-scale operators.
On the financial side, Loop Capital expects Vertiv to materially outpace consensus Street estimates over the medium term. The analysts forecast revenue rising to $19.3 billion in 2027 and to $25.1 billion in 2028, figures that the note states are above current Wall Street expectations. Adjusted earnings per share are projected to climb to $13.70 by 2028.
The report argues that Vertiv's relatively high exposure to the data center market - which the note estimates represents roughly 85% of company revenue - supports a premium valuation given the firm's direct relevance to the infrastructure challenges associated with AI deployments.
Loop Capital's analysis connects increased GPU power density to specific infrastructure requirements: improved electricity delivery, more efficient cooling, and factory-built modular deployments that shorten timelines for capacity expansion. According to the note, these technical demands are likely to benefit companies that can provide integrated systems that combine power, thermal management, and rapid site build-out.
While Loop Capital presents a bullish growth outlook and a clear strategic rationale for Vertiv's positioning, the report's forecasts are predicated on the scale and timing of AI infrastructure investments that the analysts expect over the next several years. The note frames its financial projections and valuation case within that assumed expansion of AI compute spending.
In sum, Loop Capital's initial coverage casts Vertiv as a key supplier to an expanding market for AI infrastructure, elevating power distribution and cooling solutions from supporting roles to central elements in the race to deploy ever-denser AI racks.
Key takeaways
- Loop Capital initiated coverage of Vertiv with a Buy rating and a $500 price target, citing strong exposure to AI data center demand.
- The firm projects a near sevenfold expansion of Vertiv's addressable AI data center revenue between 2023 and 2028 and forecasts AI accelerator deployments to increase from about 9 million units in 2025 to 29 million by 2027.
- Loop Capital forecasts global AI infrastructure spending could reach roughly $2 trillion annually by 2028, and expects Vertiv revenue of $19.3 billion in 2027 and $25.1 billion in 2028, with adjusted EPS of $13.70 by 2028.
Sectors impacted - Data center infrastructure, cloud services, and high-performance computing hardware.
Risks and uncertainties
- The growth projections depend on the pace and scale of AI infrastructure investment by hyperscalers and enterprises; slower-than-expected spending would affect demand for power and cooling equipment.
- Technical adoption risks exist - the transition to liquid cooling and higher-voltage power architectures must proceed at scale to drive the projected increase in addressable revenue.
- Vertiv's valuation case is tied to its high concentration in data center revenue (about 85%); any shifts in end-market dynamics could disproportionately impact the company's financial performance.
Conclusion
Loop Capital's initiation presents Vertiv as a central supplier to an anticipated AI infrastructure super-cycle. The firm's thesis links rising GPU power density and modular deployment strategies to increased demand for Vertiv's power and cooling solutions, and supports a bullish revenue and earnings outlook through 2028. The investment case is directly tied to the timing and magnitude of AI-related capital expenditures across major cloud providers and enterprise data center operators.