In This Article:
Vertiv Holdings VRT and TE Connectivity TEL are key players in the AI infrastructure domain, providing essential components and solutions for data centers. Vertiv specializes in power and thermal management systems, crucial for maintaining optimal conditions in AI-driven data centers. TE Connectivity offers high-speed connectors and sensors that facilitate efficient data transmission and system reliability.
Per IDC estimates, AI infrastructure is poised to surpass $200 billion in spending by 2028, offering a solid opportunity for both stocks.
So, VRT or TEL — Which of these AI Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for VRT
Vertiv’s extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar and modular solutions, is noteworthy. In the trailing 12 months, organic orders grew approximately 20%, with a book-to-bill of 1.4 times for the first quarter of 2025, indicating a strong prospect. Backlog grew 10% sequentially and 25% year over year to $7.9 billion.
The company expanded its portfolio with the introduction of the Vertiv CoolLoop Trim Cooler, enhancing air and liquid cooling solutions for AI and High-Performance Computing applications. The system offers up to 70% energy savings, 40% space reduction, and seamless integration for high-density cooling environments.
Vertiv launched four new systems designed to meet the growing demands of AI applications. The four new systems include Vertiv Unify software for infrastructure management, SmartRun modular prefabricated solutions, CoolLoop RDHx high-density heat exchangers, and PowerDirect Rack high-density DC power shelves, all designed to enhance power efficiency, thermal management, and scalability in AI-driven data centers.
The company’s rich partner base, which includes Maxom, Ballard Power Systems, Compass Datacenters, NVIDIA, Intel, ZincFive, and Tecogen, is a key catalyst.
The Case for TEL
TE Connectivity is benefiting from secular growth trends in key markets and increasing demand for connectivity solutions, especially in AI, automotive electrification, and industrial automation.
The company saw orders grow to $4.25 billion, 6% both sequentially and year over year, in the second quarter of fiscal 2025, driven by strong growth in its Industrial segment. This includes increased momentum in AI applications and strong demand in aerospace, defense, and energy sectors.
TEL’s strong momentum in AI applications, particularly in digital data networks, has been noteworthy. Its design wins in hyperscale AI platforms have set the company up for substantial revenue growth, which is expected to exceed $700 million in fiscal 2025. This reflects the increasing adoption of AI technologies across various industries.
TEL has positioned itself as a leader in AI infrastructure, especially in the digital data networks space. The company experienced nearly 80% organic growth in its digital data networks business in the second quarter of fiscal 2025, driven by increasing ramps from hyperscale AI platforms.