Data Center Infrastructure Growth Stocks for 2026: Vertiv and Arista Networks
Data Center Infrastructure Growth Stocks for 2026: Vertiv and Arista Networks
Most investors looking for the next Palantir or great growth stocks in 2026 are essentially looking at the same place. This is usually where returns go to die, where they get compressed, and where people are essentially chasing the same 10 names.
When Palantir went up 1,678% and Nvidia rose 1,232% - that was five years ago. It's not about what worked last year or in 2021. 2026 is a whole new ball game. The important question is: How do you win in 2026?
Today, I'll introduce two data center infrastructure growth stocks that haven't experienced their "Palantir moment" or "Nvidia moment" yet, but have solid fundamentals.
đ Vertiv (Ticker: VRT) - The Dominant Force in Data Center Cooling
A $62 Billion Hidden Champion
Vertiv is a $62 billion company. It started gaining attention about 6 months ago, and while 2025 was pretty good overall, it hasn't experienced the parabolic growth like Nvidia or Palantir over the past few years.
Why Vertiv?
This company sits on a very crucial bottleneck of the data center industry - immersive cooling.
As you should know by now, cooling and electricity are the biggest two bottlenecks of AI and data centers. It's not so much about GPUs anymore. It's about how we power and cool all these data centers.
Simply put - infrastructure, picks and shovels.
Market Outlook and Growth Potential
As computing continues to grow, with more data centers and denser data centers, Vertiv grows with it.
- 2030 TAM (Total Addressable Market): $70-90 billion/year
- Current Revenue: ~$9 billion/year
- Expected Operating Income Growth: 3-4x in the next couple of years
Fundamental Analysis đ
Vertiv's management quality is remarkably impressive:
| Metric | Value |
|---|---|
| Revenue Growth (2 years) | 80% |
| Current Annual Growth | 28% |
| Free Cash Flow Growth (2 years) | 440% |
| Current FCF Growth | 27% |
| Forward P/E | 34 |
| Short Interest | 2.7% (almost none) |
| Stock MVP Score | 80/100 |
When free cash flow grows 440% while revenue grows 80%, what does that mean? The company squeezes more dollars out of the same dollar of revenue. This is proof of excellent scalability.
A Forward P/E of 34 is extremely low considering the company's quality and industry position.
đ Arista Networks (Ticker: ANET) - The King of AI Data Center Networking
A $165 Billion Giant
Arista Networks is a $165 billion company. It's been on the recommended list for about two and a half years, up 228%. This year it rose about 19% - not bad, but roughly in line with the S&P 500.
It hasn't experienced an explosive moment like Palantir or Nvidia yet.
Arista's Core Competency
Like Vertiv, Arista also holds about 20% market share. As companies build more and more AI data centers, connectivity and networking inside those data centers become increasingly important.
This is where Arista dominates.
They sell high-speed data center networking gear - equipment you essentially can't have AI without. As computing scales, Arista keeps making more money.
Market Outlook
- 2030 AI Data Center Networking TAM: $50-60 billion/year
- Current Revenue: ~$8.5 billion/year
- Expected Operating Income Growth: 2-3x
Fundamental Analysis đ
When you pop the hood, the engine is squeaky clean:
| Metric | Value |
|---|---|
| Revenue Growth (2 years) | 115% |
| Current Annual Growth | 28% |
| Free Cash Flow Growth (2 years) | 538% |
| FCF Growth (12 months) | 27% |
| Debt | $0 |
| Cash Position | $10 billion |
| Forward P/E | 39 |
| Stock MVP Score | 80/100 |
Zero debt and $10 billion in cash - truly impressive. A Forward P/E of 39 isn't expensive for a company of this quality.
đĄ Key Investment Points Summary
Common Traits of Both Companies
- Essential AI Data Center Infrastructure - GPUs alone aren't enough. AI doesn't run without cooling and networking.
- ~20% Market Share - Industry standards in their respective fields
- Explosive Free Cash Flow Growth - Proven scalability
- Haven't Had Their "Moment" Yet - Room for upside
- Low Short Interest - Market trusts them
Why Now?
2026 is the year AI infrastructure investment goes mainstream. GPU competition is already overheated, but infrastructure like cooling and networking is just getting started.
When everyone is looking at the same place, real opportunities lie elsewhere. Vertiv and Arista Networks might be exactly those opportunities.
Always invest based on your own judgment and responsibility. This article is for informational purposes only, not investment advice.
Next Posts
The Smart Money Trap: Why Hedge Funds All Own the Same Stocks
Why do hedge funds all own the same stocks? Discover the hidden incentive structures, career risks, and why blindly following the crowd can be one of the most dangerous things you do as an investor.
2026 Economic Outlook: How Tax Cuts and Rate Reductions Will Shape the Economy
Expert analysis of the 2026 economic outlook covering tax cuts, interest rate reductions, the PROSEC strategy, tariff impacts, and bond market risks. Essential insights for investors preparing their portfolios for the year ahead.
Essential Cybersecurity Growth Stocks for 2026: CrowdStrike and Zscaler
Analyzing the investment points and fundamentals of CrowdStrike and Zscaler - cybersecurity growth stocks that have become essential in the AI era.
Previous Posts
2026 Cybersecurity Investment: Security Becomes Infrastructure, Not Just a Theme
In 2026, cybersecurity transitions from theme to essential infrastructure. Explore key insights from Google's report and compare BUG vs CIBR ETFs for your security investment strategy.
AI Infrastructure Investment Guide: Power and Data Centers Are the New Opportunity
AI expansion is driving surging demand for power and data center infrastructure. Learn what to really watch at CES and how to invest in infrastructure through PAVE ETF.
2026 US Stock Investment Roadmap: Key Events and Timing Strategies by Quarter
In 2026, timing matters more than stock selection. This guide covers key quarterly events including CES, Big Tech earnings, FOMC, Jackson Hole, and midterm elections with strategic investment insights.