nVent Electric NVT shares have surged 46.1% in the past six months, outperforming the Zacks Electronics - Miscellaneous Components industry’s decline of 15.5%. The stock also outperformed its industry peers, including Rogers ROG, OSI Systems OSIS and TE Connectivity TEL. In the past six months, shares of Rogers have gained 22.1%, while OSI Systems and TE Connectivity shares have plunged 11.6% and 5.3%, 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.
6-Month Price Return Performance
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What’s Behind the Rally in NVT Stock?
What’s fueling this strength is nVent Electric’s exposure to two fast-growing markets — data centers and power utilities. Companies in these two sectors are increasing their investments in electrical systems and cooling solutions, and nVent Electric sits right in the middle of this spending wave. NVT is capitalizing on these trends through its innovative portfolio strength in AI infrastructure and liquid cooling solutions, which are aiding its overall financial performance.
In the last reported financial results for the second quarter of 2026, the company’s net sales soared 52.8% year over year to $1.47 billion and surpassed the Zacks Consensus Estimate by 17%. Similarly, adjusted earnings per share (EPS) jumped 68.6% to $1.45 per share and beat the consensus mark by 21%.
Considering a strong demand for its solutions and a better-than-expected first-quarter performance, nVent Electric raised its guidance for 2026. The company now expects 2026 revenue growth in the range of 37-39%, up from its previous guidance of 26-28%. The company now expects 2026 adjusted EPS in the band of $5.00-$5.10, up from its prior guidance of $4.45-$4.55.
Strong Data Center Demand Aids Nvent Electric's Prospects
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.
NVT is also adding capacity to meet rising demand. The company opened its Blaine facility in Minnesota earlier this year, 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. NVT expects liquid cooling to remain a long-term growth area as AI chips generate more heat. Management estimates that liquid cooling currently accounts for only 10-15% of data center cooling, leaving room for further adoption.
The above-mentioned factors show that NVT is well positioned to benefit from strong AI-related demand, healthy orders and new capacity, which could help the company maintain its growth momentum. 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%.
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Strength in Power Utilities Bodes Well for NVT’s Prospects
nVent Electric is seeing strong demand in its power utilities business as electricity needs continue to rise. Power utilities grew double digits in the second quarter of 2026. Management said the growth is being supported by rising electricity demand, an aging grid and higher power requirements from data centers. The company expects power utilities to remain an important part of its infrastructure growth opportunity.
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 has been increasing its exposure to infrastructure, with data centers and power utilities as key areas of focus. Infrastructure accounted for nearly 60% of sales in the first half of 2026 compared with 45% in 2025. 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 power utilities business could therefore provide NVT with another source of growth as electricity demand increases. Grid modernization and the aging power grid also support the long-term opportunity. Management said it is planning ahead with customers and suppliers to make sure it can support both markets. With double-digit power utility growth already visible and continued investment in infrastructure, the business could become an increasingly important growth driver for NVT.
Key Technical Indicator Signals Bullish Trend for NVT
nVent Electric shares are trading above their 50-day and 200-day moving averages, a bullish technical signal that indicates the potential for continued upward momentum in the near term.
NVT 50-Day & 200-Day Simple Moving Averages
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NVT’s Valuation Reflects High Growth Expectations
nVent Electric is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. NVT’s forward 12-month P/S ratio sits at 4.88X, higher than the industry’s forward 12-month P/S ratio of 4.14X.
NVT Forward 12-Month P/S Ratio
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NVT stock also trades at a higher P/S multiple compared with other industry peers, including OSI Systems, Rogers and TE Connectivity. At present, OSI Systems, Rogers and TE Connectivity have P/S multiples of 2.00X, 2.62X and 2.93X, respectively.
NVT’s rally reflects investor excitement about AI-related data center demand, putting it above industry and peers in terms of valuation, reflecting the high growth expectations of the company in the long term.
Conclusion: Buy nVent Electric Stock Right Now
nVent Electric is seeing steady demand from data centers and power utilities, which is helping drive strong orders and a growing backlog. Further, the company is expanding capacity to support future demand. These factors support the outlook for continued growth. The stock’s valuation reflects high growth expectations from the company, which is set to benefit from strong long-term demand from AI-related data center projects.
Currently, nVent Electric sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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