Will 800V DC Data Centers Create Growth Opportunity for NVT?
nVent Electric NVT sees the shift toward higher-power data centers as a potential growth opportunity. During its second-quarter 2026earnings 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 and Super Micro Computer SMCI.
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
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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
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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.
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NVT currently 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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This article originally published on Zacks Investment Research (zacks.com).
