Vertiv Holdings, LLC

Key Points
Data center cooling specialist Vertiv solves a problem the AI data center industry didn’t fully anticipate.
Digital Realty Trust is in infrastructure space, but growth isn’t the only thing this unique ticker offers its shareholders.
Unprofitable Nebius is apt to remain volatile for the foreseeable future, but a recently won contract speaks volumes about just how capable it is.
As much as the artificial intelligence (AI) industry has grown just since the late-2022 launch of ChatGPT, it's still only a fraction of what it's likely to become.
Analysts with Cathie Wood's Ark Invest family of exchange-traded funds (ETFs) predict spending on AI infrastructure -- data centers, mostly -- is set to soar from last year's $500 billion to $1.4 trillion in 2030, jibing with an outlook from JPMorgan. That's annualized growth of more than 20%, offering investors an opportunity that's just too good to pass up.
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But which stocks are best positioned to benefit from the industry's expansion? Probably not AI chipmaker Nvidia or its hardware peers; their very highest-growth days are arguably behind them. From here, it's the names building these AI data centers with the most to gain.
With that as the backdrop, here are three to consider adding to your portfolio this year.
1. Vertiv
Vertiv (NYSE: VRT) isn't a data center stock per se. But data centers of the future will look considerably different -- for the better -- than they do now because of this company.
In short, Vertiv helps AI data centers handle the massive amount of heat their equipment creates.
It's always been a problem for any computer equipment, initially solved with simple fans and adequate air conditioning. As computing processors and racks of tethered motherboards have become more powerful and densely packed, their heat output increasingly risks permanent damage to this equipment. That's why Global Market Insights predicts the worldwide data center cooling market is set to grow at an average pace of more than 10% per year through 2034, led by the liquid-cooling solutions of the business, according to an outlook from Precedence Research.
This projection plays right into the heart of Vertiv's portfolio of offerings. Although it offers a range of conventional HVAC-style solutions, its flagship profit center is liquid cooling. Indeed, just earlier this month it unveiled a new modular liquid-cooling solution (called the MegaMod HDX) that combines direct-to-chip liquid cooling with air-cooled architectures, providing the flexibility that more and more data center operators want.
Cooling isn't all Vertiv does, for the record. The company also offers a range of power-management solutions like battery storage and distribution solutions that are also incredibly efficient, putting the company squarely in a business that Precedence expects to swell from less than $9 billion per year now to more than $16 billion in 2035.
In other words, Vertiv is very much in the right place at the right time. That's why its top line is up nearly 30% through the first three quarters of 2025, with profits more than doubling during this stretch. Look for more of the same going forward.
2. Digital Realty Trust
Digital Realty Trust (NYSE: DLR) isn't growing nearly as quickly as Vertiv is. But that's OK. Owning Digital Realty Trust provides you with a stake in a company that's not only smack-dab in the middle of the AI infrastructure industry but also gives you a holding that serves a considerably different purpose for its shareholders.
See, Digital Realty Trust is a real estate investment trust, or REIT for short. That just means it owns revenue-bearing real estate like hotels, office buildings, apartment complexes, or in this case, data centers. These recurring rent payments are ultimately turned into dividends.
As of the latest count, Digital Realty Trust owns and operates more than 300 different facilities in more than 50 different cities, and serves more than 250 Fortune 500 companies. That's enough to generate nearly $1.6 billion in revenue during the three-month stretch ending in September, up about 10% year over year, extending a long-established growth trend. This company boasts 20 consecutive years of top-line growth, in fact.
This growth isn't the crux of the reason you might want to own a piece of this AI infrastructure name, however. It helps, to be sure. But the chief feature of this REIT is its aforementioned dividend, which has grown steadily (even if modestly) for decades, offering an income component to an investment in an industry that isn't exactly known for paying dividends. Newcomers would be plugging into it while Digital Realty Trust's forward-looking yield stands at a solid 3.1%.
3. Nebius Group
Finally, add Nebius Group (NASDAQ: NBIS) to your list of AI infrastructure stocks to buy if you want to cash in on the industry's brewing growth.
Of the three names in focus here, it's the most straightforward. This company owns several data centers built specifically for AI developers. It's also the riskiest of the three tickers in question, however. Despite its third-quarter, year-over-year top-line growth of 355% to $146 million, its loss grew from nearly $44 million in Q3 2024 to a loss of nearly $120 million for the three-month stretch ending in September of last year. Nebius' bottom line seems to be moving in the wrong direction -- because it is.
These are mostly just growing pains. Business and profits are waiting for this data center specialist even if it's not perfectly clear when the company will get over its profit hump.
This assurance lies in one of its more recent (and biggest-so-far) deals made in September with none other than Microsoft. While the specifics of the agreement weren't disclosed, the company was able to confirm a multibillion-dollar, multiyear deal to provide the software giant with AI infrastructure services from Nebius' facility in Vineland, New Jersey.
It's noteworthy simply because Microsoft could have easily built such a facility for itself or chosen any other number of AI infrastructure service providers. It still selected Nebius. There's a reason even if it's not entirely clear what that reason is.
Shares of course soared following the news. But in the absence of anything quite as exciting to continue fanning those bullish flames, those shares have withered since then.
The few analysts covering this name aren't deterred, though. Most of this small crowd still considers NBIS a strong buy, with a consensus target of $158.50 that's nearly 70% above the ticker's present price. Just bear in mind that while there's a bullish tailwind here, Nebius is also likely to dish out more volatility than most of the other names in the AI data center space.
Should you buy stock in Vertiv right now?
Before you buy stock in Vertiv, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vertiv wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 27, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Digital Realty Trust, JPMorgan Chase, Microsoft, Nvidia, and Vertiv. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Cathie Wood's Ark Invest Predicts AI Infrastructure Will Hit $1.4 Trillion by 2030: 3 Stocks to Buy This Year

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Mid-Cap Growth ETF (Symbol: IWP) where we have detected an approximate $97.7 million dollar outflow -- that's a 0.5% decrease week over week (from 149,150,000 to 148,450,000). Among the largest underlying components of IWP, in trading today Vertiv Holdings Co (Symbol: VRT) is down about 0.3%, Hilton Worldwide Holdings Inc (Symbol: HLT) is down about 0.9%, and Cencora Inc (Symbol: COR) is higher by about 0.6%. For a complete list of holdings, visit the IWP Holdings page » The chart below shows the one year price performance of IWP, versus its 200 day moving average:
Looking at the chart above, IWP's low point in its 52 week range is $99.85 per share, with $145.5992 as the 52 week high point — that compares with a last trade of $140.03. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 8%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
ARK Investment Management Top Holdings
Top Ten Hedge Funds Holding FSGI
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IWP, VRT, HLT, COR: ETF Outflow Alert

Key Points
Vertiv's partnership with Nvidia makes it one of the most compelling liquid cooling solution providers.
The AI boom is still in its early stages, and tech giants need Vertiv's services to ensure AI chips do not overheat.
Vertiv is expanding its EMEA market share, which can translate to higher overall revenue growth.
Vertiv's (NYSE: VRT) liquid-cooling solutions are a vital backbone of AI infrastructure. Without the company's cooling technology, AI chips would quickly overheat and become useless. Although Vertiv isn't the only company that provides liquid cooling solutions, it is one of the few that is exclusively focused on AI infrastructure and has a direct partnership with Nvidia (NASDAQ: NVDA).
That's just scratching the surface of what makes Vertiv a wealth multiplier for long-term investors. It has certainly lived up to that description, with a 775% return over the past five years, but more gains appear to be right around the corner for these reasons.
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The Nvidia partnership is a big deal
Vertiv's partnership with Nvidia allows the liquid-cooling solutions provider to work directly with Nvidia for upcoming AI chips. Whenever Nvidia releases a new chip, it is telling the world that Vertiv's technology can keep it up and running.
Tech companies in the AI industry value speed and aren't afraid to throw money at proven providers. Vertiv's status as a pre-certified vendor for AI infrastructure makes it the easy choice for many companies that are comfortable paying more for a guaranteed solution than skimping costs for a liquid cooling solution that may not work.
Investors can see the results of this competitive advantage in Vertiv's Q3 2025 earnings. The company saw a 60% year-over-year increase in organic orders and raised full-year guidance for net sales and other metrics.
The AI boom isn't going anywhere
Vertiv's substantial five-year gain aligns with the rising demand for artificial intelligence. If tech companies no longer needed AI or cut their spending, it would hurt Vertiv stock. However, neither of those scenarios is probable.
Artificial intelligence has become the foundation for many companies. Amazon uses the technology to optimize its online marketplace to make personalized product recommendations. Alphabet uses AI to improve its search engine results. Meta Platforms also leverages AI to display more optimal ad campaigns to each user.
That's just for their core products. All three of those companies use AI for other segments as well, and some companies, like ChatGPT, would not have been possible without artificial intelligence.
Many tech companies have committed to increased AI spending this year compared to last, with some tech giants announcing multiyear plans that extend past the 2030s. The AI boom is still in its early innings, and that's a great sign for Vertiv investors who want compounded returns.
The EMEA AI buildout should expand
All of the "Magnificent Seven" stocks are located in the U.S., which is why more than 60% of Vertiv's revenue comes from the Americas. The company's Q3 results demonstrate that it is also gaining ground in the Asia-Pacific (APAC) market, with revenue up by 20.2% year over year in those countries.
The Europe, Middle East, and Africa (EMEA) market is the only concern, with revenue only up by 0.2% year over year in that region. However, this trend of low growth won't last forever.
Vertiv told investors in its third-quarter earnings presentation that it expects AI infrastructure deployment in EMEA to "accelerate in 2026." It's easy to take Vertiv at its word, given the results it has already produced for investors.
Its status as a Nvidia partner can also help it gain more market share in EMEA in 2026. This development would give Vertiv another high-growth opportunity that can translate into attractive long-term gains.
Should you buy stock in Vertiv right now?
Before you buy stock in Vertiv, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vertiv wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 26, 2026.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Nvidia, and Vertiv. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Reasons to Buy Vertiv Stock Like There's No Tomorrow​

Key Points
Data centers require specialized cooling systems to avoid damaging equipment.
Vertiv is a key supplier of liquid cooling technology used in data centers.
Vertiv has a strategic partnership with Nvidia.
As artificial intelligence (AI) has gone mainstream, the tech sector has rightfully been the biggest beneficiary. These companies are responsible for building high-power hardware, developing and training AI, and creating the apps that people interact with daily. AI is largely why nine of the world's 10 most valuable public companies are tech companies.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
However, with the expansion and adoption of AI has come a growing demand in nontech sectors, especially energy and industrials. If you're looking for a nontech stock making its mark and benefiting from AI, consider Vertiv (NYSE: VRT).
Where Vertiv fits in the AI supply chain
Have you ever been using your laptop and noticed it getting hot? That's because the hardware inside is creating heat as it works. Now, imagine a huge data center with thousands of servers. That's a lot of heat being generated.
Aside from being uncomfortable for workers, excessive heat can also deteriorate and break equipment. That's money companies have to spend on replacing equipment and time spent without full computing capacity.
There isn't a simple "turn on the air conditioning and let it do its job" solution, either. It requires specialized cooling infrastructure because even the most powerful air conditioning units aren't powerful enough to pull heat away. That's where companies like Vertiv come into the picture.
Vertiv makes the cooling systems and power management tools that ensure data centers don't overheat. Its liquid cooling system pulls heat away from servers more efficiently than air by a long shot, and its power management tools act as a backup power source.
High demand is reflected in Vertiv's financials
Vertiv stock had a good 2025, finishing the year up 42%. It has been, and should continue to be, a beneficiary of increased data center spending from some of the world's largest tech companies. There are no new data centers without cooling technology.
Vertiv also secured a partnership with Nvidia. When Nvidia designs a chip, it works with Vertiv to ensure a cooling system is ready for it once it's manufactured.
In the third quarter of 2025, Vertiv had $2.67 billion in revenue, up 29% year over year. Its operating income (profit from core operations) grew faster, increasing 39% year over year to $517 million. Vertiv's profit growing faster than revenue is a sign that it's becoming more efficient.
Vertiv's backlog -- orders that haven't been completed -- at the end of the third quarter was $9.5 billion. This puts plenty of work ahead for the company, and to help meet demand, Vertiv is investing in new manufacturing plans.
You'd be paying a premium for Vertiv's stock if you bought right now, and if performance falls short of its high expectations, there could be high volatility and a pullback. That said, its crucial role and strategic partnerships give it plenty of growth opportunities and it's worth a look.
Should you buy stock in Vertiv right now?
Before you buy stock in Vertiv, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vertiv wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 25, 2026.
Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Vertiv. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Forget Tech Stocks: The Power Stock That AI Can't Live Without

Serve Robotics Inc. SERV has expanded its footprint into the healthcare sector with the announced acquisition of Diligent Robotics, a leading provider of AI-powered robot assistants for hospitals. The transaction, expected to close in the first quarter of 2026, will be funded through the issuance of SERV common stock valued at $29.0 million to Diligent shareholders, subject to net debt and customary adjustments, with the potential for an additional earn-out of up to $5.3 million upon the achievement of specified milestones.
The acquisition allows Serve to expand into indoor and healthcare environments, where safety, reliability and human-centric design are essential. By combining SERV and Diligent, the company strengthens its ability to deploy autonomous systems that operate seamlessly alongside people. This marks Serve’s first entry into indoor robotics, extending its platform beyond outdoor use cases to improve healthcare productivity, operational efficiency and long-term growth diversification.
Following the news, SERV stock gained 3.1% in the after-hours trading yesterday.
Accretive Transaction for Serve Robotics
Strategically, the deal diversifies Serve’s business model. Through the acquisition, the company will gain access to Moxi, an autonomous hospital robot that handles routine delivery tasks, allowing clinical staff to focus more on patient care. Deployed in over 25 U.S. hospitals with more than 1.25 million deliveries completed, Moxi demonstrates proven reliability at scale and operates on NVIDIA’s Jetson platform using advanced AI and simulation training. Hospitals provide data-rich, complex environments that accelerate learning, with every Moxi interaction contributing to a shared autonomy stack that strengthens Serve’s AI across its broader platform.
The Serve-Diligent combination is expected to enhance the deployment and scalability of Moxi robots nationwide, accelerate AI-driven autonomy as each robot learns from others and validate high-revenue healthcare use cases while improving fleet economics. It will also expand the adoption of Serve’s autonomy platform across industries requiring indoor navigation and manipulation, drive long-term efficiency through shared supply chains and technology infrastructure and generate meaningful revenues, with each hospital deployment projected to contribute $200K-$400K annually.
Inorganic Growth Initiatives
Serve is pursuing a disciplined inorganic growth strategy to deepen its technological capabilities and accelerate long-term scalability. On Aug. 18, 2025, it acquired Vayu Robotics, a leader in urban robot navigation leveraging large-scale AI models, advancing SERV’s mission to redefine autonomous delivery and positioning it at the forefront of the emerging “physical AI” paradigm. On Sept. 9, 2025, Serve acquired assets of Phantom Auto Inc. and its subsidiary Voysys AB, a Swedish pioneer in ultra-low latency video streaming, connectivity and teleoperation technology, for approximately $5.75 million in cash. This acquisition strengthens Serve’s technology stack to support its expanding fleet of autonomous delivery robots. Overall, the company’s inorganic strategy is highly targeted, focused on deepening core capabilities and thereby supporting disciplined expansion and sustainable competitive advantage.
SERV’s Stock Price Performance
SERV stock has climbed 21.2% in the past month, outperforming the Zacks Computers - IT Services industry’s 4.5% decline. A series of strategic acquisitions, high-impact platform partnerships and rapid expansion across multiple end markets have supported this momentum. The company’s third-generation fleet, equipped with best-in-class sensors, generates proprietary urban datasets that continuously enhance AI performance. These capabilities are expected to improve operational efficiency, accelerate autonomy and reinforce SERV’s competitive position, supporting sustainable long-term growth.
Image Source: Zacks Investment Research
SERV’s Zacks Rank & Other Key Picks
Currently, Serve Robotics carries a Zacks Rank #2 (Buy).
Other top-ranked stocks from the Computer and Technology sector are:
NVIDIA Corporation NVDA sports a Zacks Rank of 1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 2.8%, on average. NVIDIA stock has gained 6.6% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s 2026 sales and earnings per share (EPS) indicates growth of 62.9% and 55.9%, respectively, from the prior-year levels.
Vertiv Holdings Co VRT flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 14.9%, on average. Vertiv stock has rallied 39.8% in the past six months.
The Zacks Consensus Estimate for Vertiv’s 2026 sales and EPS indicates growth of 21.6% and 29.3%, respectively, from the prior-year levels.
Amphenol Corporation APH presently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 17.9%, on average. Amphenol stock has jumped 49.6% in the past six months.
The Zacks Consensus Estimate for Amphenol’s 2026 sales and EPS indicates growth of 12.4% and 23%, respectively, from the year-ago period’s levels.
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Serve Enters Healthcare With Diligent Robotics Acquisition

Vertiv VRT is benefiting from strong international demand for data center infrastructure, driven by the global acceleration of digital transformation and AI adoption.
The company reported a robust third-quarter 2025, with organic sales growth of 28% year over year, driven by a 43% increase in the Americas and 21% growth in the APAC region. While EMEA sales declined 4%, Vertiv remains optimistic about a rebound in the second half of 2026, citing strong demand for AI infrastructure and strict data sovereignty requirements in Europe. The company’s backlog has grown 30% year over year to $9.5 billion, providing strong visibility into 2026, with significant contributions expected from international markets.
The company’s expanding portfolio has been noteworthy. Vertiv recently announced new configurations of its Vertiv MegaMod HDX prefabricated power and hybrid cooling solutions. These are designed for high-density AI and HPC deployments, supporting rack densities above 100 kW and power capacities ranging from 1.25 MW to 10 MW.
The modular systems are available worldwide and integrate direct-to-chip liquid cooling, redundant power architecture and factory-tested components. This setup helps speed up deployment, maximize space, and create a scalable, reliable AI infrastructure.
Vertiv anticipates continued significant organic sales growth, driven by its strong backlog and healthy pipeline. For fourth-quarter 2025, revenues are expected to be between $2.81 billion and $2.89 billion. Organic net sales are expected to increase in the 18% to 22% range.
Vertiv Faces Stiff Competition
Vertiv is facing increasing competition from Super Micro Computer SMCI and Hewlett-Packard Enterprise HPE. Both Super Micro Computer and Hewlett-Packard Enterprise are expanding their capabilities in the AI infrastructure market.
Super Micro Computer is benefiting internationally through significant global expansion efforts. The company has established new production facilities in Taiwan, the Netherlands, Malaysia and is planning to open a facility in the Middle East. These expansions aim to increase production capacity, enhance cost competitiveness and meet regional AI requirements. Super Micro Computer is scaling production to 6,000 racks per month, including 3,000 DLC racks, within fiscal 2026.
Hewlett-Packard Enterprise’s expanding AI infrastructure portfolio has been noteworthy. In December 2025, Hewlett Packard Enterprise and NVIDIA expanded their partnership to launch the AI Factory Lab in Grenoble, France, addressing EU customers’ needs for more control and autonomy over their AI infrastructure and data.
Vertiv’s Share Price Performance, Valuation, and Estimates
VRT’s shares have gained 39.9% in the past six-month period. The broader Zacks Computer & Technology sector has appreciated 16.8%, while the Zacks Computers - IT Services industry has declined 10.9% in the same period.
VRT Stock's Performance
Image Source: Zacks Investment Research
Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 19.09X compared with the Computer and Technology sector’s 10.74X. VRT has a Value Score of D.
VRT's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 earnings is pegged at $4.12 per share, which has increased by a penny over the past 30 days. This indicates a 44.56% increase from the reported figure of 2024.
Vertiv Holdings Co. Price and Consensus
Vertiv currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Vertiv's International Expansion Drive More Upside in the Stock?

Serve Robotics SERV reported meaningful progress in lowering robot unit costs during the third quarter of 2025, marking an important step in strengthening its long-term operating model. Management highlighted that the company’s Gen 3 robots now cost roughly one-third as much as prior-generation units, reflecting improvements in design simplification, manufacturing efficiency and supply-chain optimization.
These cost reductions stem from several structural changes. Management pointed to a more modular robot architecture, fewer custom assemblies and tighter supplier relationships, alongside broader ecosystem improvements. In particular, the growing availability of lower-cost sensors such as LiDAR — supported by suppliers shipping at scale — has contributed to materially lower hardware costs. Collectively, these developments position Serve Robotics to deploy robots more efficiently as fleet size expands.
However, third-quarter gross margin performance reflected the company’s continued investment ahead of scale, rather than immediate benefits from lower unit costs. During the quarter, Serve Robotics expanded its operational footprint, launched additional cities and integrated recent acquisitions, including Vayu Robotics. These initiatives increased near-term costs as the company builds capacity for future growth. In the third quarter, total operating expenses came in at $30.4 million (compared with $8.2 million reported in the prior-year quarter), while adjusted EBITDA came in at negative $24.9 million (compared with negative $6.2 million reported in the prior-year quarter).
Management emphasized that margin improvement is expected to come primarily through higher utilization, rather than hardware cost reductions alone. In the third quarter, average daily operating hours per robot increased 12.5% sequentially, intervention rates declined and autonomous miles rose meaningfully. These efficiency gains supported a 66% sequential increase in delivery volume, while delivery reliability remained near 100%. Management noted that recent efficiency improvements are still in the early stages, as the company continues to invest in fleet expansion and new market launches ahead of reaching utilization levels that would meaningfully improve margins.
Looking ahead, Serve Robotics’ ability to convert falling unit costs into sustained margin improvement will depend on whether utilization gains continue to compound across new markets and platform partnerships. While the foundation for improved economics is taking shape, management indicated that meaningful margin expansion is expected to follow scale as utilization improves across a larger and more autonomous fleet.
SERV’s Price Performance, Valuation & Estimates
Shares of Serve Robotics have gained 1.6% in the past three months against the industry’s 2.7% fall. In the same time frame, other industry players like Vertiv Holdings Co VRT and BigBear.ai Holdings, Inc. BBAI have declined 0.9% and 16.7%, respectively, while Leidos Holdings, Inc. LDOS has gained 4.8%.
SERV’s Stock Three-Month Price Performance
Image Source: Zacks Investment Research
SERV stock is currently trading at a premium. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 44.94, well above the industry average of 15.99. Then again, other industry players, such as Vertiv, BigBear.ai and Leidos have P/S ratios of 5.31, 15.58 and 1.39, respectively.
SERV’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Serve Robotics’ 2026 loss per share has widened in the past 60 days.
EPS Trend of SERV Stock
Image Source: Zacks Investment Research
The company is likely to report dismal earnings, with projections indicating a 15% fall in 2026. Conversely, industry players like Vertiv, BigBear.ai and Leidos are likely to witness growth of 29.3%, 72.8% and 4.6%, respectively, year over year in 2026 earnings.
SERV stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Serve Robotics Translate Lower Robot Costs Into Margin Leverage?

Investors might want to start buying the best AI stocks after Taiwan Semiconductor posted blockbuster, artificial intelligence-boosted fourth-quarter results on Thursday.
The semiconductor foundry giant that manufactures Nvidia’s AI chips offered impressive guidance, confirming that the AI arms race remains full steam ahead in 2026.
Check out the Zacks Earnings Calendar to stay ahead of market-making news.
Taiwan Semi TSM and other semiconductor and AI stocks soared on Thursday as Wall Street races into best-in-class AI stocks before the AI hyperscalers such as Amazon and Alphabet start reporting.
Let’s dive right into a few of the best AI stocks (Vertiv and AMD) that investors should consider buying right now after Taiwan Semi raised its outlook on bullish AI growth in 2026.
Why Investors Must Buy AI and Tech Stocks in 2026
Lower interest rates and strong earnings growth are the lifeblood of stock market bull runs.
December’s CPI data shows that inflation remains in check, further cementing Wall Street bets that the Fed will lower rates again in 2026.
On top of that, total S&P 500 earnings are expected to grow 12.8% in 2026, boosted by 20% Tech sector expansion, with 14.8% earnings growth projected in 2027. These outlooks would top 2025’s 12.1% projected bottom-line expansion, highlighting the massive AI-boosted run.
Image Source: Zacks Investment Research
Wall Street is increasingly upbeat about forecasted earnings expansion across the entire economy. All 16 Zacks sectors are projected to post positive earnings growth for the first time since 2018.
The chart below highlights how much the Tech sector’s 2026 earnings outlook has improved from early July until now, as demonstrated by the Mag 7.
Image Source: Zacks Investment Research
These earnings estimates are likely to improve since they don’t factor in the broadly bullish guidance Taiwan Semi provided for the entire AI and tech economy.
TSMC, which makes the cutting-edge chips for Nvidia, Apple, and others, raised its 2026 capex guidance to $52 billion to $56 billion, blowing away 2025's $40.9 billion. TSMC expects its revenue to climb another 30% in 2026, with sales set to expand at a CAGR of ~25% from 2024 to 2029.
Buy AI Infrastructure Stock VRT Before It Soars Again
Vertiv Holdings Co VRT is a technology infrastructure and continuity solutions firm that’s transformed into a must-buy picks and shovels AI stock. VRT works directly with Nvidia NVDA to help solve critical behind-the-scenes challenges in the AI data center world, such as cooling.
The tech company is poised to be a long-term AI winner no matter how the technology evolves from the current large language models (LLMs) and which AI companies eventually dominate.
Vertiv is an AI darling that has soared over 1,000% in the past three years. Yet, its average Zacks price target offers 15% upside from its current price, and it's down 12% from its October highs even as Taiwan Semi and other AI stocks skyrocket to fresh peaks to start 2026.
Image Source: Zacks Investment Research
The AI infrastructure company’s portfolio of hardware, software, analytics, and ongoing services is built around power, cooling, and IT infrastructure. The Ohio-based firm’s growing portfolio helps make sure the high-density computing power that drives technological innovation and the economy is running as smoothly as possible 24/7.
Vertiv is projected to grow its revenue by 28% in 2025 and 22% in FY26 to $12.43 billion—more than doubling its sales between 2022 and 2026.
The behind-the-scenes AI stock is expected to grow its adjusted EPS by 45% and 29%, respectively, following 60% growth in 2024 and 236% expansion in 2023—climbing from $0.53 in 2022 to $5.33 in FY26.
Image Source: Zacks Investment Research
The AI data center infrastructure company’s upward earnings revisions earn VRT a Zacks Rank #2 (Buy). Vertiv found support at its January 2025 breakout levels several times over the last few months.
The tech stock looks ready to possibly surge to new highs before or after its Q4 earnings release (due on Feb. 11, according to the Zacks earnings calendar) as it attempts to move meaningfully above its 50-day moving average.
The pullback, mixed with its strong earnings outlook, has VRT trading at a 25% discount to its highs at 32.5X forward earnings. Vertiv is also far from overheated in terms of RSI levels, even as many other AI stocks look a bit bloated in the short run.
Buy AI Chip Stock and Nvidia Rival AMD Now and Hold
Advanced Micro Devices AMD designs high-performance semiconductors. Most importantly for investors, AMD is attempting to eat away at its much larger rival Nvidia’s dominance in the AI chip market.
AMD remains far behind AI chip leader Nvidia in terms of market share. But being second best in the AI chips race is hardly a bad place to be, considering the long-term upside. AMD boasts that its expanding portfolio of AI-optimized CPUs, GPUs, networking, and software solutions help power “billions of experiences across cloud and AI infrastructure” and beyond.
Image Source: Zacks Investment Research
The AI chip company posted strong Q3 results and provided a bullish long-term outlook in early November. AMD outlined its “long-term plan to expand data center and AI leadership with greater than 35% revenue CAGR and greater than $20 non-GAAP EPS target” over the “next three to five years.”
AMD grew its revenue from $6.7 billion in 2019 to $25.8 billion in 2024, benefitting from the expansion of data centers, gaming, PCs, and more. The GPU giant is projected to grow its revenue by 32% in 2025 and 28% in 2026 to reach a whopping $43.43 billion.
Its earnings growth outlook is also robust, with AMD expected to boost its EPS by 20% in FY25 and 58% in 2026 to reach $6.26 a share vs. $3.31 in 2024. The chart below highlights that AMD’s earnings are projected to climb to well over $12 a share over the next several years.
Image Source: Zacks Investment Research
AMD stock blew away the Tech sector and every Mag 7 company outside of Nvidia over the past decade, having soared ~11,400%. The AI chip stock’s impressive run includes a 97% surge in the past 12 months, more than doubling Nvidia. Despite the run, its average Zacks price target offers 28% upside from its current levels.
The AI chip company recently found support near its long-term 21-week moving average and its early 2024 highs (which it climbed back above in October). This technical backdrop, coupled with the fact that it trades at a 50% discount to its five-year highs at 40X 12-month earnings, could mean AMD is ready to post new highs sooner than later. AMD reports its Q4 results on Tuesday, February 3.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Best AI Stocks to Buy Now Before they Soar like TSMC

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in ImmunityBio Inc (Symbol: IBRX), where a total volume of 77,618 contracts has been traded thus far today, a contract volume which is representative of approximately 7.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.2% of IBRX's average daily trading volume over the past month, of 15.8 million shares. Especially high volume was seen for the $3 strike call option expiring January 21, 2028, with 14,014 contracts trading so far today, representing approximately 1.4 million underlying shares of IBRX. Below is a chart showing IBRX's trailing twelve month trading history, with the $3 strike highlighted in orange:
Vertiv Holdings Co (Symbol: VRT) saw options trading volume of 26,477 contracts, representing approximately 2.6 million underlying shares or approximately 47.9% of VRT's average daily trading volume over the past month, of 5.5 million shares. Particularly high volume was seen for the $210 strike call option expiring March 20, 2026, with 2,771 contracts trading so far today, representing approximately 277,100 underlying shares of VRT. Below is a chart showing VRT's trailing twelve month trading history, with the $210 strike highlighted in orange:
And NextNav Inc (Symbol: NN) saw options trading volume of 4,880 contracts, representing approximately 488,000 underlying shares or approximately 46.6% of NN's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $20 strike call option expiring March 20, 2026, with 2,002 contracts trading so far today, representing approximately 200,200 underlying shares of NN. Below is a chart showing NN's trailing twelve month trading history, with the $20 strike highlighted in orange:
For the various different available expirations for IBRX options, VRT options, or NN options, visit StockOptionsChannel.com.
Also see:
Institutional Holders of PFC
LCAA market cap history
Funds Holding ZM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: IBRX, VRT, NN

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Mid-Cap Growth ETF (Symbol: IWP) where we have detected an approximate $162.0 million dollar outflow -- that's a 0.8% decrease week over week (from 150,100,000 to 148,950,000). Among the largest underlying components of IWP, in trading today Hilton Worldwide Holdings Inc (Symbol: HLT) is up about 0.8%, Vertiv Holdings Co (Symbol: VRT) is up about 2.9%, and CloudFlare Inc (Symbol: NET) is lower by about 0.4%. For a complete list of holdings, visit the IWP Holdings page » The chart below shows the one year price performance of IWP, versus its 200 day moving average:
Looking at the chart above, IWP's low point in its 52 week range is $99.85 per share, with $145.5992 as the 52 week high point — that compares with a last trade of $142.21. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
ETFs Holding BPL
Institutional Holders of SATL
ZDPY Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	80.91 25.13
Price/Sales	6.22 1.42
P/B	26.02 2.46
P/FCF	44.77 19.85

Indicator	TTM Median
ROE	34.44 15.00
ROA	7.14 6.07
Net Worth	46.95 1.43
Quick Ratio	1.02 1.15
Current Ratio	1.38 1.59

Indicator	TTM Median
Net Profit Margin	7.73 7.23
Operating Margin	15.88 10.13
Gross Margin	36.46 32.39
Return on tangible equity	-46.53 26.20

Indicator	TTM Median
EPS	0.76 0.54
EPS Forecast	0.71 0.54
Revenue	2.07B 194.00M
Gross Profit	756.00M —
EBITDA	442.00M —

Vertiv Holdings, LLC

TTM metrics for the latest quarter under IFRS and their historical dynamics

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