Back to top

Image: Bigstock

VRT vs. NVT: Which Data Center Infrastructure Stock Is the Better Buy?

Read MoreHide Full Article

Key Takeaways

  • Vertiv's $7.9 billion backlog and strong order growth highlight robust AI and data center demand.
  • nVent is gaining from its fast-growing Data Solutions segment and recent $975 million acquisition.
  • NVT's lower valuation and ongoing product launches give it an edge over VRT in current conditions.

Vertiv (VRT - Free Report) and nVent Electric (NVT - Free Report) are major players in the data center infrastructure market, providing critical infrastructure solutions for data centers and industrial environments. While Vertiv offers advanced thermal and power management systems tailored for large-scale data centers, nVent Electric provides robust electrical connection and protection solutions, including enclosures and heat management, that are essential to reliable data center operations.

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 nVent Electric are likely to gain from the massive growth opportunity.

So, VRT or NVT — Which of these Data Center Infrastructure stocks has the greater upside potential? Let’s find out.

The Case for VRT

Vertiv’s extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar and modular solutions, is noteworthy. In the trailing 12 months, organic orders grew approximately 20%, with a book-to-bill of 1.4 times for the first quarter of 2025, indicating a strong prospect. Backlog grew 10% sequentially and 25% year over year to $7.9 billion.

Vertiv recently introduced a 142kW cooling and power reference architecture for the NVIDIA GB300 NVL72 platform, designed to accelerate AI infrastructure deployment with enhanced energy efficiency and scalability. Integrated with SimReady 3D assets in NVIDIA Omniverse, the solution streamlines design, testing, and global rollout for next-gen AI data centers.

Vertiv also launched four new systems designed to meet the growing demands of AI applications. The four new systems include Vertiv Unify software for infrastructure management, SmartRun modular prefabricated solutions, CoolLoop RDHx high-density heat exchangers, and PowerDirect Rack high-density DC power shelves, all designed to enhance power efficiency, thermal management, and scalability in AI-driven data centers.

Strong capital expenditure spending plans by hyperscalers on data center capacity expansion bode well for Vertiv. The company’s rich partner base, which includes Maxom, Ballard Power Systems, Compass Datacenters, NVIDIA, Intel, ZincFive, and Tecogen, is a key catalyst.

The Case for NVT

nVent Electric is benefiting from strong momentum in the data center space through its rapidly growing Data Solutions business. This segment has shown double-digit sales increases, driven by increased demand for electrical infrastructure products that support data center operations. 

Acquisitions have also played an important role in expanding NVT’s portfolio. In May 2025, NVT completed its $975 million acquisition of the Electrical Products Group from Avail Infrastructure Solutions. The deal strengthens NVT’s Systems Protection segment and expands its presence in power utilities, data centers, and renewable infrastructure.

In addition to acquisitions, nVent’s investment in new products is also contributing to its success in the data center space. During the quarter, the company launched 35 new products, mainly aimed at meeting evolving data center demands.

nVent’s collaboration with NVIDIA has been noteworthy. The company is delivering advanced liquid cooling solutions to support NVIDIA’s GB200 NVL72 and next-gen platforms, enhancing performance and energy efficiency in AI-driven data centers.

Price Performance and Valuation of VRT and NVT

In the year-to-date period, Vertiv’s shares have lost 2.7%, whereas nVent Electric’s shares have returned 0.7%. Vertiv's share price has declined due to increasing macroeconomic challenges and uncertainty attributed to higher tariffs. 

NVT shares are benefiting from strong growth in its Data Solutions business and increased demand for electrical infrastructure products in high-growth verticals like data centers and power utilities. 

VRT and NVT Stock Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Valuation-wise, Vertiv shares are currently overvalued as suggested by a Value Score of D, whereas NVT shares are cheap, as indicated by a Value Score of B.

In terms of forward 12-month Price/Sales, Vertiv shares are trading at 4.17X, higher than NVT’s 3.01X.

VRT and NVT Valuation

Zacks Investment Research
Image Source: Zacks Investment Research

How Do Earnings Estimates Compare for VRT & NVT?

The Zacks Consensus Estimate for Vertiv’s 2025 earnings is pegged at $3.55 per share, which remained unchanged over the past 30 days, indicating a 24.56% increase year over year.

The Zacks Consensus Estimate for nVent Electric's 2025 earnings is pegged at $3.08 per share, which has remained unchanged over the past 30 days, indicating a 23.69% increase year over year.

Conclusion

While both Vertiv and nVent Electric are well-positioned to benefit from the booming data center market, NVT is the stronger investment option compared to Vertiv, thanks to its consistent growth in its Data Solutions segment and strategic acquisitions. Its cheap valuation and ongoing product innovation offer greater upside potential. Vertiv’s higher valuation and recent stock decline make it a less compelling choice at this time.

Currently, nVent Electric has a Zacks Rank #2 (Buy), making the stock a stronger pick compared to Vertiv, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


nVent Electric PLC (NVT) - free report >>

Vertiv Holdings Co. (VRT) - free report >>

Published in