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HPE expands AI offerings with NVIDIA-powered servers and agentic AI in its Juniper Networking portfolio.
Vertiv (VRT - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) are major players in the data center infrastructure market. While Vertiv offers advanced thermal and power management systems tailored for large-scale data centers, Hewlett Packard Enterprise offers integrated data center solutions through its server, storage and networking infrastructure.
Per a Grand View Research report, the data center infrastructure management market was valued at around $3.06 billion in 2024 and is expected to register a CAGR of 17.3% from 2025 to 2030. Both Vertiv and Hewlett-Packard are likely to gain from the massive growth opportunity.
So, VRT or HPE — Which of these Data Center Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for VRT
Vertiv benefits from an extensive product portfolio that spans thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions, which is noteworthy. In the trailing 12 months, organic orders grew approximately 11%, with a book-to-bill of 1.2 times for the second quarter of 2025, indicating a strong prospect. Backlog grew 7% sequentially and 21% year over year to $8.5 billion.
Vertiv is a leading provider of thermal and power management solutions for data centers that consume immense amounts of power. The increasing complexity of AI hardware and edge computing further increases the power demand. Vertiv’s energy-efficient power and cooling solutions play a critical role in this aspect.
Acquisitions have played an important role in further expanding Vertiv’s footprint. In August, Vertiv acquired Waylay NV, a Belgium-based company known for its hyperautomation and generative AI software. This move aims to improve its AI-driven monitoring and control technologies for power and cooling systems. The acquisition boosts Vertiv’s capacity to provide smart infrastructure solutions that optimize energy use, increase uptime and enhance operational intelligence in data centers worldwide.
Vertiv’s partnership with NVIDIA is a plus. It aims to stay one generation ahead of NVIDIA, enabling efficient and scalable power solutions for next-generation AI data centers.
The Case for HPE
Hewlett Packard Enterprise is expanding its footprint through HPE Cray and ProLiant servers, which are bundled with liquid-cooled solutions and high-speed interconnects.
Building on this momentum, in August, HPE announced advancements to its NVIDIA AI Computing by HPE portfolio, introducing HPE ProLiant Compute servers with NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs in a 2U form factor.
Further expanding its portfolio, HPE introduced innovations to its HPE Juniper Networking portfolio and AI-native Mist platform in August, adding agentic AI-powered troubleshooting, expanded control of autonomous actions, a generalized Large Experience Model and advanced AIOps features for data centers to simplify IT operations and enhance user experiences.
Price Performance and Valuation of VRT and HPE
In the year-to-date period, Vertiv’s shares have gained 39.8% and Hewlett-Packard’s shares have appreciated 16.7%. The outperformance in VRT can be attributed to its robust product portfolio and rich partner base, which are driving order growth.
Despite HPE’s expanding portfolio, the company is suffering from challenging macroeconomic uncertainties and rising competition.
VRT and HPE Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, Vertiv shares are currently overvalued, as suggested by a Value Score of D. Hewlett-Packard shares are cheap, as suggested by a Value Score of B.
In terms of trailing 12-month Price/Book, Vertiv shares are trading at 19.41X, higher than Hewlett-Packard’s 1.34X.
VRT and HPE Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for VRT & HPE?
The Zacks Consensus Estimate for Vertiv’s 2025 earnings is currently pegged at $3.83 per share, which has increased by a penny over the past 30 days and increased 34.39% year over year.
The Zacks Consensus Estimate for Hewlett-Packard’s 2025 earnings is currently pegged at $1.90 per share, which has remained unchanged over the past 30 days and represents a 4.52% year-over-year decline.
Hewlett Packard Enterprise Company Price and Consensus
Vertiv earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 10.65%. HPE earnings beat the Zacks Consensus Estimate in all the trailing three quarters, while missing the same in one, delivering an average surprise of 4.39%. The average surprise of Vertiv is higher than that of Hewlett-Packard.
Conclusion
While both Vertiv and Hewlett-Packard stand to benefit from the data center infrastructure boom, Vertiv’s stronger earnings momentum, diversified growth drivers and consistent performance suggest it may offer greater upside potential in the near term.
A softened IT spending environment amid macroeconomic headwinds and rising competition may undermine Hewlett-Packard’s near-term prospects.
Image: Bigstock
VRT vs. HPE: Which Data Center Infrastructure Stock Is the Better Buy?
Key Takeaways
Vertiv (VRT - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) are major players in the data center infrastructure market. While Vertiv offers advanced thermal and power management systems tailored for large-scale data centers, Hewlett Packard Enterprise offers integrated data center solutions through its server, storage and networking infrastructure.
Per a Grand View Research report, the data center infrastructure management market was valued at around $3.06 billion in 2024 and is expected to register a CAGR of 17.3% from 2025 to 2030. Both Vertiv and Hewlett-Packard are likely to gain from the massive growth opportunity.
So, VRT or HPE — Which of these Data Center Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for VRT
Vertiv benefits from an extensive product portfolio that spans thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions, which is noteworthy. In the trailing 12 months, organic orders grew approximately 11%, with a book-to-bill of 1.2 times for the second quarter of 2025, indicating a strong prospect. Backlog grew 7% sequentially and 21% year over year to $8.5 billion.
Vertiv is a leading provider of thermal and power management solutions for data centers that consume immense amounts of power. The increasing complexity of AI hardware and edge computing further increases the power demand. Vertiv’s energy-efficient power and cooling solutions play a critical role in this aspect.
Acquisitions have played an important role in further expanding Vertiv’s footprint. In August, Vertiv acquired Waylay NV, a Belgium-based company known for its hyperautomation and generative AI software. This move aims to improve its AI-driven monitoring and control technologies for power and cooling systems. The acquisition boosts Vertiv’s capacity to provide smart infrastructure solutions that optimize energy use, increase uptime and enhance operational intelligence in data centers worldwide.
Vertiv’s partnership with NVIDIA is a plus. It aims to stay one generation ahead of NVIDIA, enabling efficient and scalable power solutions for next-generation AI data centers.
The Case for HPE
Hewlett Packard Enterprise is expanding its footprint through HPE Cray and ProLiant servers, which are bundled with liquid-cooled solutions and high-speed interconnects.
Building on this momentum, in August, HPE announced advancements to its NVIDIA AI Computing by HPE portfolio, introducing HPE ProLiant Compute servers with NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs in a 2U form factor.
Further expanding its portfolio, HPE introduced innovations to its HPE Juniper Networking portfolio and AI-native Mist platform in August, adding agentic AI-powered troubleshooting, expanded control of autonomous actions, a generalized Large Experience Model and advanced AIOps features for data centers to simplify IT operations and enhance user experiences.
Price Performance and Valuation of VRT and HPE
In the year-to-date period, Vertiv’s shares have gained 39.8% and Hewlett-Packard’s shares have appreciated 16.7%. The outperformance in VRT can be attributed to its robust product portfolio and rich partner base, which are driving order growth.
Despite HPE’s expanding portfolio, the company is suffering from challenging macroeconomic uncertainties and rising competition.
VRT and HPE Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, Vertiv shares are currently overvalued, as suggested by a Value Score of D. Hewlett-Packard shares are cheap, as suggested by a Value Score of B.
In terms of trailing 12-month Price/Book, Vertiv shares are trading at 19.41X, higher than Hewlett-Packard’s 1.34X.
VRT and HPE Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for VRT & HPE?
The Zacks Consensus Estimate for Vertiv’s 2025 earnings is currently pegged at $3.83 per share, which has increased by a penny over the past 30 days and increased 34.39% year over year.
Vertiv Holdings Co. Price and Consensus
Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. Quote
The Zacks Consensus Estimate for Hewlett-Packard’s 2025 earnings is currently pegged at $1.90 per share, which has remained unchanged over the past 30 days and represents a 4.52% year-over-year decline.
Hewlett Packard Enterprise Company Price and Consensus
Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company Quote
Vertiv earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 10.65%. HPE earnings beat the Zacks Consensus Estimate in all the trailing three quarters, while missing the same in one, delivering an average surprise of 4.39%. The average surprise of Vertiv is higher than that of Hewlett-Packard.
Conclusion
While both Vertiv and Hewlett-Packard stand to benefit from the data center infrastructure boom, Vertiv’s stronger earnings momentum, diversified growth drivers and consistent performance suggest it may offer greater upside potential in the near term.
A softened IT spending environment amid macroeconomic headwinds and rising competition may undermine Hewlett-Packard’s near-term prospects.
Currently, Vertiv has a Zacks Rank #2 (Buy), making the stock a stronger pick than Hewlett-Packard, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.