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nVent Electric Stock Rises 61% YTD: Time to Hold or Book Profits?
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Key Takeaways
NVT benefits from AI data-center demand, with 2026 data-center sales expected to exceed $2 billion.
NVT's tariff costs could reach $100 million in 2026, up from its prior $80 million estimate.
NVT's premium valuation and rising competition from HUBB, SMCI and APH warrant caution.
nVent Electric (NVT - Free Report) shares have surged 60.9% year to date (YTD), outperforming the Zacks Electronics - Miscellaneous Components industry’s decline of 13%. The stock also outperformed its peers, including Hubbell (HUBB - Free Report) , Super Micro Computer (SMCI - Free Report) and Amphenol (APH - Free Report) . YTD, shares of Hubbell, Super Micro Computer and Amphenol have gained 7%, 46.2% and 26.5%, respectively.
The outperformance of nVent Electric’s shares raises the question: Does it still have room to run, or is it time for investors to consider taking profits? Let’s find out.
YTD Price Return Performance
Image Source: Zacks Investment Research
What’s Behind the Rally in NVT Stock?
What’s fueling this strength is nVent Electric’s growing exposure to AI data centers, particularly through its liquid cooling and electrical infrastructure solutions.
nVent Electric is seeing strong demand from data centers as spending on artificial intelligence (AI) infrastructure continues to rise. NVT expects the infrastructure vertical to post strong double-digit growth in 2026, supported by higher AI-related data center investments. Further, the company expects data center sales to exceed $2 billion in 2026, more than double from 2025 levels.
Growth is coming from liquid cooling, cable management and engineered buildings. NVT is also serving a broad customer base, including hyperscalers, neo-clouds and multi-tenant data centers. The company ended the second quarter with a $2.5 billion backlog, and management sees data center orders remaining strong in the third quarter of 2026.
The growing use of AI is adding another source of demand. Due to rising computing needs, AI data centers require more power, which is leading to rising investment in power infrastructure. NVT serves utilities directly as well as through distribution partners. The company sees opportunities in engineered buildings and other infrastructure used around data centers as well. This gives the company an opportunity to benefit from higher power demand beyond its direct data center business.
NVT is also adding capacity to meet rising demand. The company expects to spend about $130 million on capital expenditures in 2026, up 40% year over year. Most of the higher investment is going toward capacity for data centers, power utilities and supply-chain resilience. The company opened its Blaine facility in Minnesota earlier in 2026, which effectively doubled its liquid-cooling capacity. Further, management said another expansion is needed and announced the Blaine 2 facility, which is expected to open in the first half of 2027. The Zacks Consensus Estimate for nVent Electric’s 2026 and 2027 revenues indicates year-over-year growth of 40.04% and 18.16%, respectively.
Image Source: Zacks Investment Research
NVT's Premium Valuation Warrants a Cautious Approach
While the above-mentioned catalysts have strengthened NVT’s growth outlook, the sharp rally has also made the stock’s valuation a serious concern.
nVent Electric is currently trading at a higher price-to-earnings (P/E) multiple compared with the industry. NVT’s forward 12-month P/E ratio sits at 27.55X, higher than the industry’s forward 12-month P/E ratio of 22.69X.
NVT Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
NVT stock also trades at a higher P/E multiple compared with other industry peers, including Hubbell and Super Micro Computer, while trading slightly lower than Amphenol. At present, Hubbell, Super Micro Computer and Amphenol have P/S multiples of 21.46X, 9.81X and 27.98X, respectively.
Any slowdown in AI-related data-center spending or weaker-than-expected orders could lead investors to reassess the premium multiple. Therefore, while NVT’s strong fundamentals support the rally, its elevated valuation limits the margin for error and remains a key risk for investors.
Tariffs Remain a Significant Headwind for NVT
However, tariff costs remain a significant near-term risk for nVent Electric as the company expects the impact of tariffs to reach approximately $100 million in 2026, up from its previous estimate of $80 million. In the second quarter of 2026, tariff costs contributed more than $30 million to inflationary pressures, which nVent Electric offset through pricing and productivity actions.
As the company continues to expand production and invest in data center and power utility capacity, higher tariffs could add to its cost base. While nVent Electric expects to offset the impact through pricing, supply-chain productivity and other operational measures, sustained tariff pressure could weigh on margins and profitability if the company is unable to fully recover the higher costs.
nVent Electric Faces Stiff Competition
nVent Electric faces stiff competition from peers like Hubbell, Super Micro Computer and Amphenol, which are also expanding their presence in data centers and developing electrical, cooling, power and connectivity solutions to support growing AI infrastructure demand.
Super Micro Computer is strengthening its position in AI infrastructure with its Data Center Building Block Solutions, which combine GPU and CPU servers, storage, direct liquid cooling, cooling distribution units, networking and data center management software. The company is also expanding its liquid-cooling capacity and expects manufacturing capacity to exceed 6,000 racks per month, including more than 3,000 direct liquid-cooling racks. Its broader offering could allow SMCI to capture a larger share of AI data-center spending, increasing competition for NVT in liquid cooling and other infrastructure solutions.
Hubbell is benefiting from rising data-center and utility infrastructure spending through its Electrical Solutions and Utility Solutions businesses. HUBB’s data-center sales in the second quarter of 2026 increased approximately 65%, while the company raised its 2026 data-center growth expectation to about 50%. Hubbell is also expanding capacity to support demand across data centers and utility transmission and distribution markets. Its strong portfolio of electrical components and growing presence in data centers could intensify competition with NVT in electrical infrastructure and related applications.
Amphenol is another strong competitor in the AI data-center market, particularly in power and connectivity solutions. Its IT datacom sales grew 89% year over year and 63% organically in the second quarter of 2026, driven by strong demand for AI-related products. The company also has a broad portfolio of high-speed copper, fiber-optic and power interconnect solutions used across AI data centers. Amphenol’s expanding power interconnect portfolio, which spans applications from inside the rack to the broader data-center infrastructure, could increase competitive pressure on NVT as AI systems require more power and advanced infrastructure.
Conclusion: Sell nVent Electric Stock Right Now
nVent Electric continues to benefit from strong demand for AI data centers and power utilities, with data center sales expected to exceed $2 billion in 2026 and strong orders supporting its backlog.
However, higher tariff costs and the stock’s premium valuation warrant a cautious approach to NVT. Further, intensifying competition from peers such as Hubbell, Super Micro Computer and Amphenol remains a key concern, as these companies are also expanding their data center, cooling and power infrastructure offerings. These factors could hurt NVT’s prospects in the near term, which makes this Zacks Rank #4 (Sell) stock less attractive in the near term.
View the Zacks #1 Rank List
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nVent Electric Stock Rises 61% YTD: Time to Hold or Book Profits?
Key Takeaways
nVent Electric (NVT - Free Report) shares have surged 60.9% year to date (YTD), outperforming the Zacks Electronics - Miscellaneous Components industry’s decline of 13%. The stock also outperformed its peers, including Hubbell (HUBB - Free Report) , Super Micro Computer (SMCI - Free Report) and Amphenol (APH - Free Report) . YTD, shares of Hubbell, Super Micro Computer and Amphenol have gained 7%, 46.2% and 26.5%, respectively.
The outperformance of nVent Electric’s shares raises the question: Does it still have room to run, or is it time for investors to consider taking profits? Let’s find out.
YTD Price Return Performance
Image Source: Zacks Investment Research
What’s Behind the Rally in NVT Stock?
What’s fueling this strength is nVent Electric’s growing exposure to AI data centers, particularly through its liquid cooling and electrical infrastructure solutions.
nVent Electric is seeing strong demand from data centers as spending on artificial intelligence (AI) infrastructure continues to rise. NVT expects the infrastructure vertical to post strong double-digit growth in 2026, supported by higher AI-related data center investments. Further, the company expects data center sales to exceed $2 billion in 2026, more than double from 2025 levels.
Growth is coming from liquid cooling, cable management and engineered buildings. NVT is also serving a broad customer base, including hyperscalers, neo-clouds and multi-tenant data centers. The company ended the second quarter with a $2.5 billion backlog, and management sees data center orders remaining strong in the third quarter of 2026.
The growing use of AI is adding another source of demand. Due to rising computing needs, AI data centers require more power, which is leading to rising investment in power infrastructure. NVT serves utilities directly as well as through distribution partners. The company sees opportunities in engineered buildings and other infrastructure used around data centers as well. This gives the company an opportunity to benefit from higher power demand beyond its direct data center business.
NVT is also adding capacity to meet rising demand. The company expects to spend about $130 million on capital expenditures in 2026, up 40% year over year. Most of the higher investment is going toward capacity for data centers, power utilities and supply-chain resilience. The company opened its Blaine facility in Minnesota earlier in 2026, which effectively doubled its liquid-cooling capacity. Further, management said another expansion is needed and announced the Blaine 2 facility, which is expected to open in the first half of 2027. The Zacks Consensus Estimate for nVent Electric’s 2026 and 2027 revenues indicates year-over-year growth of 40.04% and 18.16%, respectively.
Image Source: Zacks Investment Research
NVT's Premium Valuation Warrants a Cautious Approach
While the above-mentioned catalysts have strengthened NVT’s growth outlook, the sharp rally has also made the stock’s valuation a serious concern.
nVent Electric is currently trading at a higher price-to-earnings (P/E) multiple compared with the industry. NVT’s forward 12-month P/E ratio sits at 27.55X, higher than the industry’s forward 12-month P/E ratio of 22.69X.
NVT Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
NVT stock also trades at a higher P/E multiple compared with other industry peers, including Hubbell and Super Micro Computer, while trading slightly lower than Amphenol. At present, Hubbell, Super Micro Computer and Amphenol have P/S multiples of 21.46X, 9.81X and 27.98X, respectively.
Any slowdown in AI-related data-center spending or weaker-than-expected orders could lead investors to reassess the premium multiple. Therefore, while NVT’s strong fundamentals support the rally, its elevated valuation limits the margin for error and remains a key risk for investors.
Tariffs Remain a Significant Headwind for NVT
However, tariff costs remain a significant near-term risk for nVent Electric as the company expects the impact of tariffs to reach approximately $100 million in 2026, up from its previous estimate of $80 million. In the second quarter of 2026, tariff costs contributed more than $30 million to inflationary pressures, which nVent Electric offset through pricing and productivity actions.
As the company continues to expand production and invest in data center and power utility capacity, higher tariffs could add to its cost base. While nVent Electric expects to offset the impact through pricing, supply-chain productivity and other operational measures, sustained tariff pressure could weigh on margins and profitability if the company is unable to fully recover the higher costs.
nVent Electric Faces Stiff Competition
nVent Electric faces stiff competition from peers like Hubbell, Super Micro Computer and Amphenol, which are also expanding their presence in data centers and developing electrical, cooling, power and connectivity solutions to support growing AI infrastructure demand.
Super Micro Computer is strengthening its position in AI infrastructure with its Data Center Building Block Solutions, which combine GPU and CPU servers, storage, direct liquid cooling, cooling distribution units, networking and data center management software. The company is also expanding its liquid-cooling capacity and expects manufacturing capacity to exceed 6,000 racks per month, including more than 3,000 direct liquid-cooling racks. Its broader offering could allow SMCI to capture a larger share of AI data-center spending, increasing competition for NVT in liquid cooling and other infrastructure solutions.
Hubbell is benefiting from rising data-center and utility infrastructure spending through its Electrical Solutions and Utility Solutions businesses. HUBB’s data-center sales in the second quarter of 2026 increased approximately 65%, while the company raised its 2026 data-center growth expectation to about 50%. Hubbell is also expanding capacity to support demand across data centers and utility transmission and distribution markets. Its strong portfolio of electrical components and growing presence in data centers could intensify competition with NVT in electrical infrastructure and related applications.
Amphenol is another strong competitor in the AI data-center market, particularly in power and connectivity solutions. Its IT datacom sales grew 89% year over year and 63% organically in the second quarter of 2026, driven by strong demand for AI-related products. The company also has a broad portfolio of high-speed copper, fiber-optic and power interconnect solutions used across AI data centers. Amphenol’s expanding power interconnect portfolio, which spans applications from inside the rack to the broader data-center infrastructure, could increase competitive pressure on NVT as AI systems require more power and advanced infrastructure.
Conclusion: Sell nVent Electric Stock Right Now
nVent Electric continues to benefit from strong demand for AI data centers and power utilities, with data center sales expected to exceed $2 billion in 2026 and strong orders supporting its backlog.
However, higher tariff costs and the stock’s premium valuation warrant a cautious approach to NVT. Further, intensifying competition from peers such as Hubbell, Super Micro Computer and Amphenol remains a key concern, as these companies are also expanding their data center, cooling and power infrastructure offerings. These factors could hurt NVT’s prospects in the near term, which makes this Zacks Rank #4 (Sell) stock less attractive in the near term.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.