Vertiv VRT and Broadcom AVGO are major players in the AI and data center infrastructure markets. Vertiv supplies critical power, cooling and physical infrastructure for AI data centers, while Broadcom provides custom AI accelerators, networking and connectivity technologies used in large-scale AI clusters.
So, Vertiv or Broadcom— Which of these AI Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for VRT Stock
Vertiv is benefiting from strong demand for AI infrastructure as hyperscalers, colocation providers, neocloud operators and enterprises continue to expand data-center capacity. The company’s global pipeline remains robust across its core markets, particularly in the Americas and APAC regions. In the second quarter of 2026, net sales increased 24% year over year, with the Americas and APAC both growing 29%. EMEA also returned to positive net sales growth.
Vertiv’s differentiated technology portfolio is another growth pillar. The company is at the forefront of power architecture evolution, supporting both AC and emerging 800V DC solutions. Collaborations with industry leaders like NVIDIA and Foxconn’s VisionBay AI have resulted in landmark projects, such as Taiwan’s first AI data center featuring NVIDIA GB300 and the world’s first AI data center adopting 800V DC architectures.
Acquisitions have also strengthened Vertiv’s portfolio. The company recently agreed to acquire UtilityInnovation Group for about $1.45 billion in cash, plus up to $1.15 billion in performance-based payments. The acquisition will add microgrid controls, onsite generation and energy-storage orchestration, specialized switchgear and behind-the-meter power architecture to Vertiv’s portfolio. The expanded capabilities are expected to help AI data-center operators secure power faster amid grid constraints and strengthen Vertiv’s end-to-end power infrastructure offerings. The transaction, subject to regulatory approvals, is expected to close in the fourth quarter of 2026. In the second quarter of 2026, acquisitions contributed 5% to revenues.
Vertiv is demonstrating strong momentum and confidence in its trajectory as a leader in AI and digital infrastructure. For the third quarter of 2026, Vertiv expects net sales of $3.65 billion to $3.85 billion.
The Case for AVGO Stock
Broadcom is benefiting from expanding AI infrastructure spending as hyperscalers and frontier AI developers accelerate investments in custom accelerators, high-speed networking and supporting data-center infrastructure. In the third quarter of fiscal 2026, Broadcom’s AI semiconductor revenues surged 221% year over year and 54% sequentially to $16.7 billion, representing 56% of total revenues. XPU shipments increased more than 3.5 times year over year and accounted for 73% of AI revenues, while AI networking revenues grew more than 2.5 times.
Broadcom’s custom AI accelerator portfolio remains a major growth catalyst. The company is supplying multiple generations of XPUs to customers including Google, Anthropic, OpenAI and Meta. It delivered Ironwood TPU v7 in high volumes and began shipping Google’s next-generation TPU v8i during the fiscal third quarter. Broadcom also shipped OpenAI’s first-generation custom accelerator, Jalapeno, while Meta’s MTIA accelerator is expected to enter production shipments in the fourth quarter.
The company is also strengthening its position in AI networking. Broadcom’s AI networking revenue is surging, with products like the Tomahawk 6 and Tomahawk Ultra Ethernet switches being rapidly adopted by nearly all major AI hyperscalers. The company’s leadership in optical interconnects and PCI Express switching further strengthens its position as a comprehensive provider of AI infrastructure.
This momentum provides strong visibility into Broadcom’s AI growth trajectory. The company expects fourth-quarter fiscal 2026 AI revenues of $21.7 billion, up 236% year over year, taking fiscal 2026 AI revenues to roughly $58 billion. Broadcom has secured supply to support AI semiconductor revenues of approximately $115 billion in fiscal 2027 and sees a path to roughly $230 billion in fiscal 2028, reflecting continued expansion in AI compute deployments.
Price Performance and Valuation of VRT and AVGO
In the year-to-date period, Vertiv and Broadcom’s shares have gained 58.7% and 4.6%, respectively. Vertiv is positioned to compound growth as AI infrastructure requires more power, cooling, services and integrated deployment support. Demand remains broad across the Americas and Asia Pacific, while EMEA has returned to growth and its pipeline is strengthening.
Despite Broadcom’s expanding portfolio, high customer concentration, intense competition, declining gross margin as the XPU mix increases and execution risk tied to large AI infrastructure commitments remain headwinds. The company also remains exposed to a sizable debt burden and integration complexity.
VRT Stock Performance
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Valuation-wise, Vertiv and Broadcom shares are currently overvalued as suggested by a Value Score of D and F, respectively.
In terms of forward 12-month Price/Sales, Vertiv shares are trading at 5.85X, lower than Broadcom’s 10.44X.
VRT’s Valuation
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How Do Earnings Estimates Compare for VRT & AVGO?
The Zacks Consensus Estimate for Vertiv’s 2026 earnings is currently pegged at $6.69 per share, which has increased 0.75% over the past 30 days. This implies a 59.29% year-over-year rise.
The Zacks Consensus Estimate for Broadcom’s 2026 earnings is currently pegged at $11.79 per share, which has increased 0.42% over the past 30 days. This indicates a 72.87% year-over-year rise.
Vertiv’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 12.61%. Broadcom’s earnings beat the consensus mark in all the trailing four quarters, delivering an average surprise of 2.51%. The average surprise of Vertiv is higher than that of Broadcom.
Conclusion
While both Vertiv and Broadcom stand to benefit from the booming AI Infrastructure boom, Vertiv appears better positioned, with stronger earnings growth, a higher earnings surprise track record, and robust AI-driven demand.
Despite its strong AI growth prospects, Broadcom faces risks from high customer concentration, intense competition, margin pressure, and execution challenges tied to large AI infrastructure commitments.
Currently, Vertiv carries a Zacks Rank #2 (Buy), making the stock a stronger pick than Broadcom, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Broadcom Inc. (AVGO): Free Stock Analysis Report
Vertiv Holdings Co. (VRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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