Prediction: Liquid Cooling Will Be the Next Supercycle Within the AI Supercycle. 1 Growth Stock to Own.

Key Points
Vertiv provides various kinds of critical solutions for data centers, including liquid cooling.
The company's order book is very strong, thanks to the robust inflow of orders from companies deploying artificial intelligence (AI) data centers.
Vertiv's growth is poised to accelerate nicely in the coming years, making it an ideal investment to capitalize on the liquid-cooling market's growth.
- 10 stocks we like better than Vertiv ›
Artificial intelligence (AI) is clearly a multiyear growth trend that's poised to have a major impact on the global economy. Consulting giant PwC estimates that the technology could boost global gross domestic product (GDP) 15 percentage points over the next decade.
In fact, it won't be wrong to call AI a supercycle, as this technology is driving a multiyear growth across several sectors such as chips, smartphones, personal computers, software, and others. Demand for AI-related hardware and software has been exceeding supply, as evidenced by the shortage of data center components and the large backlogs of companies selling AI software.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
However, AI data centers need more than just chips to function effectively. They must manage the intense heat generated while tackling AI workloads, and that is where liquid cooling comes into play.
Vertiv Holdings (NYSE: VRT) is one such company that helps AI data centers improve energy efficiency through its liquid-cooling solutions. The stock shot up 238% over the past year, and the secular growth of the liquid-cooling space should help sustain its terrific momentum.
Liquid-cooling and AI infrastructure demand are supercharging Vertiv's growth
Vertiv designs critical infrastructure for data centers, such as power supply systems, thermal management systems, and server racks and enclosures. The company has been leaning heavily into the thermal management space, which isn't surprising, as management says that "the complexity of hybrid air and liquid cooling created by AI workloads presents significant opportunities."
As a result, Vertiv has been expanding its product portfolio to offer more liquid-cooling products. The company has struck partnerships with the likes of Nvidia and Intel to design liquid-cooling solutions for their AI chip systems, including Nvidia's latest Vera Rubin platform. Importantly, Vertiv provides end-to-end solutions for companies looking to deploy AI infrastructure by integrating power, cooling, and support services, claiming that it can reduce deployment time by up to 50%.
Not surprisingly, there is terrific demand for the company's offerings. Vertiv had a book-to-bill ratio of 2.9 in Q4 2025. This metric is calculated by dividing the new orders Vertiv received by the revenue recognized during the quarter, suggesting that it received significantly more orders than it fulfilled.
As a result, Vertiv ended 2025 with an order backlog of $15 billion. That was well above the $10.2 billion revenue it generated during the year. Even better, Vertiv's margin is expanding due to higher production volumes, improved productivity, and favorable pricing.
These factors led to a 47% increase in adjusted earnings in 2025. The company anticipates 42%-45% growth in adjusted earnings this year.
Importantly, the terrific growth opportunity in liquid-cooling and other AI infrastructure components should ensure long-term growth for Vertiv.
More upside likely as liquid-cooling demand accelerates
The demand for liquid cooling in data centers is anticipated to grow at an annual rate of 31.5% through 2033, driven by complex AI workloads that require more than traditional air-cooled systems can provide.
This should lead to increased demand for Vertiv's liquid-cooling systems. That's why analysts are expecting robust revenue growth.
Vertiv should be able to sustain its healthy growth beyond the next three years due to the growth potential of the liquid-cooling market, making it a solid growth stock to buy to capitalize on this fast-growing niche, as it is trading at less than 10 times sales right now.
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 $518,530!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,069,165!*
Now, it’s worth noting Stock Advisor’s total average return is 915% — a market-crushing outperformance compared to 183% 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 April 1, 2026.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel, 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.