We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will 800V DC Data Centers Create Growth Opportunity for NVT?
Read MoreHide Full Article
Key Takeaways
nVent Electric expects data center sales to exceed $2 billion in 2026, more than double the prior year.
NVT is developing modular liquid cooling, advanced PDUs & flexible bus solutions for evolving data centers.
nVent Electric's Blaine facility doubled liquid-cooling capacity, with a second facility planned for 2027.
nVent Electric (NVT - Free Report) sees the shift toward higher-power data centers as a potential growth opportunity. During its second-quarter 2026 earnings call, management said that the industry is evolving toward 800V DC systems, which can support rising power requirements in data centers. For nVent Electric, the impact is mainly related to higher heat densities at the rack level and the need for cooling and power products that can support these changes.
NVT is already preparing its portfolio for these changing requirements. Management said that its rack power distribution units (PDUs) and some power connection products are designed to support higher surge and load capacity. The company is also working on new products for high-growth verticals, including modular liquid cooling, new PDU capabilities and ERIFLEX flexible bus solutions for medium-voltage applications.
The 800V DC transition could also add to nVent Electric's broader data-center opportunity. The company expects data-center sales to exceed $2 billion in 2026, more than double the prior year. Strong demand has already pushed NVT to expand its liquid-cooling capacity, with the Blaine facility in Minnesota effectively doubling capacity. The company plans another similarly sized facility, Blaine 2, which is expected to open in the first half of 2027.
While 800V DC is still an evolving technology, nVent Electric sees room to extend its offerings as data-center designs change. Management expects lower-voltage requirements to remain in use alongside 800V DC, giving NVT an opportunity to adapt its products to different power architectures. Continued investment in cooling, power and new product capabilities could help the company capture more spending as AI-driven data-center infrastructure expands.
The Zacks Consensus Estimate for nVent Electric’s 2026 revenues is pegged at $5.45 billion, indicating a year-over-year increase of 39.96%.
How Do Competitors Fare Against NVT
nVent Electric faces stiff competition from AI data center infrastructure players such as Vertiv (VRT - Free Report) and Super Micro Computer (SMCI - Free Report) .
Vertiv is also benefiting from strong AI data center spending and has a broad portfolio covering power and thermal management. VRT offers power, cooling and services as an integrated solution and is expanding its liquid-cooling capabilities through acquisitions, including Strategic Thermal Labs, which added server-side liquid cooling and cold-plate expertise. VRT expects 2026 sales of $14 billion, suggesting 37% year-over-year growth, with organic growth of 31%.
Super Micro Computer is another strong player in AI data-center infrastructure, with its business spanning servers, storage, networking and direct liquid cooling. Its data center building block solutions combine GPU and CPU servers, storage, direct liquid cooling, cooling distribution units, networking, and data-center management software. SMCI is also expanding its liquid-cooling capacity and expects its manufacturing network to support more than 3,000 direct liquid-cooled racks per month. For fiscal 2027, the company expects revenues of $65-$72 billion.
From a valuation standpoint, NVT trades at a forward price-to-sales ratio of 4.23X, higher than the industry’s average of 3.96X. NVT has a Value Score of D.
NVT’s Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for nVent Electric’s 2026 and 2027 earnings per share (EPS) implies year-over-year growth of 53.1% and 24.5%, respectively. EPS estimates for 2026 and 2027 have been unchanged over the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Will 800V DC Data Centers Create Growth Opportunity for NVT?
Key Takeaways
nVent Electric (NVT - Free Report) sees the shift toward higher-power data centers as a potential growth opportunity. During its second-quarter 2026 earnings call, management said that the industry is evolving toward 800V DC systems, which can support rising power requirements in data centers. For nVent Electric, the impact is mainly related to higher heat densities at the rack level and the need for cooling and power products that can support these changes.
NVT is already preparing its portfolio for these changing requirements. Management said that its rack power distribution units (PDUs) and some power connection products are designed to support higher surge and load capacity. The company is also working on new products for high-growth verticals, including modular liquid cooling, new PDU capabilities and ERIFLEX flexible bus solutions for medium-voltage applications.
The 800V DC transition could also add to nVent Electric's broader data-center opportunity. The company expects data-center sales to exceed $2 billion in 2026, more than double the prior year. Strong demand has already pushed NVT to expand its liquid-cooling capacity, with the Blaine facility in Minnesota effectively doubling capacity. The company plans another similarly sized facility, Blaine 2, which is expected to open in the first half of 2027.
While 800V DC is still an evolving technology, nVent Electric sees room to extend its offerings as data-center designs change. Management expects lower-voltage requirements to remain in use alongside 800V DC, giving NVT an opportunity to adapt its products to different power architectures. Continued investment in cooling, power and new product capabilities could help the company capture more spending as AI-driven data-center infrastructure expands.
The Zacks Consensus Estimate for nVent Electric’s 2026 revenues is pegged at $5.45 billion, indicating a year-over-year increase of 39.96%.
How Do Competitors Fare Against NVT
nVent Electric faces stiff competition from AI data center infrastructure players such as Vertiv (VRT - Free Report) and Super Micro Computer (SMCI - Free Report) .
Vertiv is also benefiting from strong AI data center spending and has a broad portfolio covering power and thermal management. VRT offers power, cooling and services as an integrated solution and is expanding its liquid-cooling capabilities through acquisitions, including Strategic Thermal Labs, which added server-side liquid cooling and cold-plate expertise. VRT expects 2026 sales of $14 billion, suggesting 37% year-over-year growth, with organic growth of 31%.
Super Micro Computer is another strong player in AI data-center infrastructure, with its business spanning servers, storage, networking and direct liquid cooling. Its data center building block solutions combine GPU and CPU servers, storage, direct liquid cooling, cooling distribution units, networking, and data-center management software. SMCI is also expanding its liquid-cooling capacity and expects its manufacturing network to support more than 3,000 direct liquid-cooled racks per month. For fiscal 2027, the company expects revenues of $65-$72 billion.
NVT's Price Performance, Valuation & Estimates
Shares of nVent Electric have jumped 58.6% year to date against the Zacks Electronics - Miscellaneous Components industry’s decline of 15.3%.
nVent Electric’s YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NVT trades at a forward price-to-sales ratio of 4.23X, higher than the industry’s average of 3.96X. NVT has a Value Score of D.
NVT’s Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for nVent Electric’s 2026 and 2027 earnings per share (EPS) implies year-over-year growth of 53.1% and 24.5%, respectively. EPS estimates for 2026 and 2027 have been unchanged over the past 30 days.
Image Source: Zacks Investment Research
NVT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.