Can AI Data Center Demand Keep Driving nVent Electric's Growth?

nVent Electric (NVT) 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 NVTnVent Electric competes with companies like Vertiv (VRT) and Hubbell (HUBB) 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 & EstimatesShares 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 PerformanceImage Source: Zacks Investment ResearchFrom 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 RatioImage Source: Zacks Investment ResearchThe 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 ResearchnVent Electric currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hubbell Inc (HUBB): Free Stock Analysis Report nVent Electric PLC (NVT): Free Stock Analysis Report Vertiv Holdings Co. (VRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks