Vertiv (NYSE:VRT) delivered a strong Q3 2024, exceeding expectations with 19% organic net sales growth year-over-year (YoY) and a 41% jump in adjusted operating profit to $417 million. The company achieved a 20.1% adjusted operating margin, a 310 bps point improvement, while adjusted free cash flow grew 52% YoY to $115 million. The 47% YoY increase in backlog to $7.4 billion further highlights the sustained demand for its infrastructure solutions.

A major growth catalyst is Vertiv's partnership with NVIDIA (NASDAQ:NVDA), co-developing the GB200 NVL72 to address the surging demand in AI and high-performance computing. This collaboration, focused on cutting-edge power and cooling solutions, underscores Vertiv's leadership in enabling the infrastructure of AI-driven data centers. Jensen Huang, CEO of NVIDIA, stated, With Vertiv's world-class cooling and power technologies, NVIDIA can realize our vision to reinvent computing and build a new industry of AI factories that produce digital intelligence to benefit every company and industry."

Additionally, Vertiv raised its full-year guidance to $7.8 billion in revenue and $2.68 in adjusted EPS, up $0.18 from prior estimates. With strong margins, a growing order book, and strategic positioning in the AI and cloud computing sectors, Vertiv is well-positioned for long-term growth, in my opinion.

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