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Can AI Data Center Demand Keep Driving nVent Electric's Growth?
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Key Takeaways
NVT saw Q3 organic orders jump about 65% on large liquid cooling demand from hyperscalers.
A new Minnesota site will double liquid cooling capacity as visibility extends into 2027.
NVT joined NVIDIA's partner network, boosting exposure as AI infrastructure demand stays strong.
nVent Electric ((NVT - Free Report) ) is seeing strong demand from data center customers, driven mainly by growth in artificial intelligence (AI) workloads. In the third quarter of 2025, organic orders rose around 65% and management said most of this increase came from large liquid cooling orders for hyperscaler programs.
The company now has visibility into 2026, with some programs extending into 2027, which suggests that customer spending plans remain firm. Its backlog also grew in double digits sequentially in the third quarter, giving nVent Electric a solid base for future revenues.
Liquid cooling continues to be a core driver. Less than 10% of data centers are liquid-cooled today, but new graphics processing unit chips require more advanced cooling, which supports long-term demand. nVent Electric has more than a decade of experience in this area and has deployed more than 1 gigawatt of cooling.
The company is also expanding capacity. A new Minnesota facility will double its footprint for liquid cooling production in early 2026. Additionally, during the third quarter, nVent Electric was also added to NVIDIA’s partner network, which increases its visibility among global AI infrastructure customers.
Moreover, the overall trend in AI infrastructure and liquid cooling demand appears strong. nVent Electric’s backlog, customer pipeline and ongoing investments suggest that data center demand is likely to remain an important growth driver for the company. The Zacks Consensus Estimate for nVent Electric’s full-year 2025 total revenues is pegged at $3.83 billion, indicating a year-over-year increase of 11.1%.
How Do Competitors Fare Against NVT
nVent Electric competes with companies like Vertiv ((VRT - Free Report) ) and Hubbell ((HUBB - Free Report) ) in the electrical and data center markets.
Vertiv is a major competitor in data center infrastructure and is now advancing large-scale power architectures for AI workloads. Vertiv recently announced it is moving to engineering-ready designs for 800 VDC power systems that will support future NVIDIA AI factories. These systems are designed for megawatt-scale racks and are expected to be released in the second half of 2026. Vertiv’s work with NVIDIA positions it as a strong player in next-generation AI data center power systems.
In the third quarter of 2025, Hubbell recorded high single-digit organic growth in its Electrical Solutions segment, supported by strong demand from data center projects and new product launches. The company said that data centers were a key driver within connectors, grounding and modular power products and it expects this strength to continue into the fourth quarter.
From a valuation standpoint, nVent Electric trades at a forward price-to-sales ratio of 3.99X, higher than the industry’s average of 2.31X.
NVT Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for nVent Electric’s full-year 2025 and 2026 earnings per share (EPS) implies year-over-year growth of 33.7% and 19.5%, respectively. EPS estimates for 2025 and 2026 have been revised upward by 4 cents and 18 cents, respectively, over the past 60 days.
Image: Bigstock
Can AI Data Center Demand Keep Driving nVent Electric's Growth?
Key Takeaways
nVent Electric ((NVT - Free Report) ) is seeing strong demand from data center customers, driven mainly by growth in artificial intelligence (AI) workloads. In the third quarter of 2025, organic orders rose around 65% and management said most of this increase came from large liquid cooling orders for hyperscaler programs.
The company now has visibility into 2026, with some programs extending into 2027, which suggests that customer spending plans remain firm. Its backlog also grew in double digits sequentially in the third quarter, giving nVent Electric a solid base for future revenues.
Liquid cooling continues to be a core driver. Less than 10% of data centers are liquid-cooled today, but new graphics processing unit chips require more advanced cooling, which supports long-term demand. nVent Electric has more than a decade of experience in this area and has deployed more than 1 gigawatt of cooling.
The company is also expanding capacity. A new Minnesota facility will double its footprint for liquid cooling production in early 2026. Additionally, during the third quarter, nVent Electric was also added to NVIDIA’s partner network, which increases its visibility among global AI infrastructure customers.
Moreover, the overall trend in AI infrastructure and liquid cooling demand appears strong. nVent Electric’s backlog, customer pipeline and ongoing investments suggest that data center demand is likely to remain an important growth driver for the company. The Zacks Consensus Estimate for nVent Electric’s full-year 2025 total revenues is pegged at $3.83 billion, indicating a year-over-year increase of 11.1%.
How Do Competitors Fare Against NVT
nVent Electric competes with companies like Vertiv ((VRT - Free Report) ) and Hubbell ((HUBB - Free Report) ) in the electrical and data center markets.
Vertiv is a major competitor in data center infrastructure and is now advancing large-scale power architectures for AI workloads. Vertiv recently announced it is moving to engineering-ready designs for 800 VDC power systems that will support future NVIDIA AI factories. These systems are designed for megawatt-scale racks and are expected to be released in the second half of 2026. Vertiv’s work with NVIDIA positions it as a strong player in next-generation AI data center power systems.
In the third quarter of 2025, Hubbell recorded high single-digit organic growth in its Electrical Solutions segment, supported by strong demand from data center projects and new product launches. The company said that data centers were a key driver within connectors, grounding and modular power products and it expects this strength to continue into the fourth quarter.
NVT's Price Performance, Valuation & Estimates
Shares of nVent Electric have skyrocketed 57.2% year to date compared with the Zacks Electronics - Miscellaneous Components industry’s growth of 50.7%.
nVent Electric YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, nVent Electric trades at a forward price-to-sales ratio of 3.99X, higher than the industry’s average of 2.31X.
NVT Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for nVent Electric’s full-year 2025 and 2026 earnings per share (EPS) implies year-over-year growth of 33.7% and 19.5%, respectively. EPS estimates for 2025 and 2026 have been revised upward by 4 cents and 18 cents, respectively, over the past 60 days.
Image Source: Zacks Investment Research
nVent Electric currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.