By Mackenzie Tatananni
Vertiv Holdings, a provider of data-center infrastructure and a key Nvidia partner, is joining the S&P 500 after a blowout past year. But those steep gains prompt the question: Just how much higher can Vertiv go?
Vertiv joins the benchmark index Monday as part of the S&P 500's quarterly rebalancing. Other additions include networking company Lumentum Holdings and its peer Coherent, as well as EchoStar, a satellite communications provider viewed by many as a play on SpaceX.
Heading into Monday, Vertiv has more than doubled over the past 12 months, surging 173%. This year alone, it's already up 58%. The tech-heavy Nasdaq 100 has fallen 5.4% and added 21%, respectively, over the same periods.
Those explosive gains can be chalked up to one thing: artificial intelligence. Vertiv was able to capitalize on the major wave of spending in 2025, specifically for liquid cooling and power management systems used in AI data centers.
The company also has the endorsement of one of the biggest players in AI; it has been a member of Nvidia's partner network since 2024. The same year, CEO Jensen Huang cited Nvidia's pact with Vertiv as a way to create effective cooling solutions for customers dealing with the increased power demands of new processors on the market.
However, the once-boundless enthusiasm for AI has hit a snag. Concerns are flaring around the enormous capital expenditures needed to fund the buildout of data centers. Investors fear so-called hyperscalers will have to issue debt to support these endeavors in the face of insufficient free cash flow. Amazon.com, Google parent Alphabet, and Oracle have issued debt for this explicit purpose.
It's unclear how much further shares can rise. Vertiv was trading at the upper end of its 52-week range on Monday, climbing 1.8% to $260.57. The stock most recently got a lift due to its inclusion in the S&P 500.
That enthusiasm helped Vertiv notch a closing high of $270.06 on March 10 and a record high of $276.78 in the following session, even as the ongoing war in Iran spurred market volatility.
Shares are at their highest level since they commenced trading on the New York Stock Exchange in February 2020. The latest leg of strength began on Feb. 11 after the infrastructure provider beat earnings forecasts and provided solid guidance.
Vertiv was named a Barron's stock pick in August 2024. Since recommending the shares, they have risen nearly 227%. It remains to be seen whether the party is over or if Vertiv can sustain this run.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
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March 23, 2026 10:12 ET (14:12 GMT)
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