NVT

nVent Electric (NVT) has surged 60.9% YTD driven by strong AI data-center demand, with 2026 data-center sales expected to exceed $2 billion. However, the stock's premium valuation (27.55X forward P/E), rising tariff costs ($100M expected in 2026), and intensifying competition from Hubbell, Super Micro Computer, and Amphenol warrant caution. Zacks rates NVT as a Sell.

nVent Electric expects data center sales to exceed $2 billion in 2026, more than doubling from the prior year, driven by the industry's shift toward 800V DC systems and higher-power requirements. The company is expanding its liquid-cooling capacity and developing modular cooling solutions, advanced PDUs, and flexible bus solutions. However, it faces competition from Vertiv and Super Micro Computer, which also have strong positions in AI data center infrastructure.