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Bull of the Day: nVent Electric plc (NVT)

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Key Takeaways

  • nVent is a must-buy AI infrastructure stock that's also benefiting from energy and grid expansion.
  • NVT's beat-and-raise Q3 earnings report on Oct. 31 cemented its AI-boosted growth outlook.
  • Despite climbing 500% in five years, it trades 18% below its average Zacks price target.

nVent Electric (NVT - Free Report)  is a soaring AI infrastructure stock that posted another beat-and-raise quarter on October 31, helping it earn a Zacks Rank #1 (Strong Buy).

NVT is an electrical connection and protection solutions standout riding converging megatrends across artificial intelligence, electrification, the AI-driven energy boom, and beyond. nVent is expanding its increasingly critical liquid cooling portfolio for AI data centers.

The AI infrastructure stock skyrocketed 500% over the past five years, crushing the Tech sector’s 120%. nVent is trading just below its all-time highs following its earnings release. Yet, NVT stock trades 20% below its average Zacks price target and in line with the Tech sector on the valuation front, despite its massive outperformance.

Plus, Wall Street loves the stock for its behind-the-scenes AI data center upside that’s projected to help nVent post double-digit earnings and revenue growth in 2025 and 2026.

NVT is a Top AI and Energy Infrastructure Stock to Buy

nVent Electric is a top maker of electrical connection and protection solutions. Its critical behind-the-scenes tech portfolio includes an array of offerings across liquid cooling, enclosures, switchgear systems, critical power solutions, and beyond.

The London-based company offers long-term upside across AI data centers, power utilities, energy storage solutions, industrial automation, telecommunications, aerospace and defense, and plenty of other key areas of the economy.

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Image Source: Zacks Investment Research

NVT’s revenue has kicked into a higher gear over the last several years as it benefits from the AI data center arms race fueled by Mag 7 tech titans such as Nvidia, Microsoft, Meta, and beyond.

For instance, nVent’s liquid cooling portfolio is gaining steam as the broader industry grows increasingly vital to the AI data center boom. Liquid cooling is essential for AI because it reliably manages the intense heat created by the massive computing power.

nVent provides its liquid cooling solutions and AI infrastructure to Nvidia’s GB200 platform and other key players in the AI data center ecosystem. NVT also boasts that its hybrid liquid-to-air solutions “help customers prepare data centers for next generation technology without completely rebuilding data center architecture.”

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Image Source: Zacks Investment Research

On top of its booming AI infrastructure segment, nVent is gaining steam in its power utility space as the U.S. and beyond race to expand energy capacity and the grid to meet soaring demand from AI data centers, reshoring, and more.

Given this backdrop, it makes sense why 10 of the 11 brokerage recommendations Zacks has are “Strong Buys,” with one “Buy.” nVent also has a solid balance sheet and pays a dividend.

NVT’s AI-Boosted Growth and Upside

nVent posted its first-ever billion-dollar sales quarter ($1.05 billion) in Q3, with organic revenue up 16%. It increased its adjusted earnings per share (EPS) by 44% and closed the period with a record backlog.

The company also “launched a number of new products, expanded capacity in several facilities to support data center and power utility growth, and executed on our acquisition integration playbook,” according to CEO Beth Wozniak. NVT raised its outlook for 2025 on the back of its strong Q3 and its “significant momentum in data centers.”

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Image Source: Zacks Investment Research

NVT averaged 15% sales growth in the last two years. It is projected to expand its revenue by 11% in 2025 and another 15% next year to reach $4.39 billion.

The company is expected to increase its earnings per share (EPS) by 34% in 2025 and 20% in 2026 to $3.98 a share. Its recent post-earnings estimate revisions extend a broader upward trend that helps it land a Zacks Rank #1 (Strong Buy). 

Buy Soaring AI Data Center Stock NVT Now?

nVent stock has soared 500% in the past five years to blow away the Zacks Tech sector’s 120%. NVT has ripped 67% higher in 2025, outpacing Nvidia’s (NVDA - Free Report)  50%, Tech’s 26%, and roughly matching fellow data center infrastructure stock Vertiv (VRT - Free Report) .

NVT shares do appear overheated in the short run alongside Vertiv, Nvidia, and the broader tech sector and the Nasdaq following the massive run off the market’s 2025 lows. nVent may test its 21-day, 50-day, or 2024 highs before the end of the year.

But market timing is a very difficult game to play. Therefore, investors bullish on nVent might take a position now and then buy more the next time it and the tech sector face serious selling pressure.

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Image Source: Zacks Investment Research

That said, nVent still trades 18% below its average Zacks price target. Its valuation is also enticing, trading in line with Tech despite blowing it away over the past five years at 29.3X forward 12-month earnings. Its AI data center infrastructure peer Vertiv, trades at 36.1X.

nVent's price-to-earnings to growth (PEG) ratio, which factors in its huge EPS growth, sits at 1.43, marking a 60% discount to its highs and 12% value against Tech. 


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