As artificial intelligence (AI) continues to gain traction, data center technology provider Vertiv Holdings Co. (VRT) has emerged as a significant winner. However, Deutsche Bank suggests that investors who missed out on the stock's more than 1,600% increase over the past three years still have an opportunity to participate in future gains, even though those gains may not be as substantial as before.

Indeed, at least in terms of forward price-to-earnings ratios, Vertiv's valuation is higher than its recent historical levels. Nicole DeBlase of Deutsche Bank noted that the stock's price-to-earnings ratio is currently 39 times, compared to a one-year median of 32 times. Vertiv supplies electrical and mechanical equipment for data centers. DeBlase pointed out that according to McKinsey's estimates, total investment in data center infrastructure could reach $7 trillion from 2025 to 2030, and Vertiv is expected to benefit from this trend. The company provides direct chip liquid cooling technology.

Deutsche Bank raised its price target for the stock from $168 to $216, indicating a 20% potential upside from its current level. However, DeBlase believes that under a more optimistic scenario, the stock price could rise to $230, representing a 27% increase from current levels.