Analyzing Vertiv vs. Nvent Electric: A Look at Data Center Infrastructure Stocks
Vertiv (VRT) and Nvent Electric (NVT) play significant roles in the data center infrastructure sector, delivering essential solutions for both data centers and industrial settings. Vertiv is recognized for its advanced thermal and power management systems tailored for large-scale operations, while Nvent Electric specializes in critical electrical connectivity and protection solutions, including enclosures and thermal management systems crucial for maintaining reliable data centers.
A recent report from Grand View estimates that the data center infrastructure management market will reach approximately $3.06 billion in 2024, with a projected CAGR of 17.3% from 2025 to 2030.
So, which stock—VRT or NVT—holds more potential? Let’s dive into it.
Vertiv boasts a wide array of products, including thermal systems, liquid cooling solutions, uninterruptible power supplies (UPS), switchgear, busbars, and modular offerings. Over the last year, organic orders climbed by about 20%, and the backlog increased by 10% year-on-year to $7.9 billion, showing considerable growth. Their recent introduction of a 142kW cooling and power reference architecture on the NVIDIA GB300 NVL72 platform highlights their focus on enhancing design and rollout of AI data centers.
In addition, Vertiv launched several new systems to cater to the soaring demand for AI applications. These innovations include the Vertiv Unify software for infrastructure management, Smartrun modular prefabricated solutions, a Coolloop RDHX high-density heat exchanger, and the Powerdirect Rack high-density DC power shelf.
Vertiv’s capital investment plan geared towards hyperscalers demonstrates its commitment to capacity expansion in data centers, supported by a diverse partner network that includes companies like Maxom, Ballard Power Systems, and Nvidia.
On the other hand, Nvent Electric is riding a wave of strong growth in its data solutions sector. This segment has witnessed double-digit sales increases due to rising demand for electrical infrastructure products that support data centers. A recent $975 million acquisition of the electrical products group from Avay Infrastructure Solutions has fortified Nvent’s system protection segment, thus expanding its reach into power utilities, data centers, and renewable infrastructure.
Nvent’s focus on new product development is also paying off; the company released 35 new products recently, addressing the changing needs of data centers. Furthermore, its collaboration with Nvidia on advanced liquid cooling solutions enhances performance and energy efficiency in AI-enabled data centers.
Looking back at stock performance, Vertiv’s shares fell by 2.7% over the past year, whereas Nvent Electric saw a modest gain of 0.7%. Vertiv’s decline can be attributed to rising tariffs and broader macroeconomic challenges.
Nvent, benefiting from the robust growth of its data solutions business, sees an increased demand for high-growth vertical infrastructure products, including those for data centers. In terms of valuation, Vertiv stocks appear overvalued by their D value scores, while NVT stocks hold a more compelling value, indicated by their B scores. When comparing price-to-sales ratios over the last year, Vertiv trades at 4.17 times against NVT’s 3.01 times.
Looking ahead, Vertiv’s estimated revenues for 2025 are pegged at $3.55 per share, reflecting a 24.56% increase over the last month. In contrast, Nvent Electric’s 2025 revenue estimates remain steady at $3.08 per share.
Both companies are poised to benefit from the expanding data center market, but Nvent Electric stands out as a stronger investment due to its steady growth in the data solutions segment and recent strategic acquisitions. Its attractive valuations and ongoing innovation present more appealing potential for investors. Meanwhile, with Vertiv facing stock declines recently, it may not be as attractive at this moment.
Currently, Nvent Electric holds a Zacks Rank of #2 (Buy), positioning it as a more favorable stock compared to Vertiv, which has a Zacks Rank of #3 (Hold).
