Overview
nVent Electric specializes in the physical enclosures, liquid cooling manifolds, and power distributions units that keep AI chips from melting. Simply put, nVent creates products that serve as the “skull and veins” of a data center. While companies like NVIDIA make AI chips, nVent makes things that prevent the chips from overheating or breaking (as AI chips run extremely hot).
Comparison
A big name in the recent AI infrastructure industry has been Vertiv (VRT), with its stock surging roughly 35% since the beginning of the year. While Vertiv builds entire data center systems, it still relies on specialized manufacturers similar to nVent for liquid cooling infrastructure.
Notable Partnerships
- NVIDIA: An official partner, providing built-to-spec liquid cooling technology to enhance the performance and energy efficiency of NVIDIA powered data centers.
- Google: A key participant in Google's Project Deschutes, which aims to create spec-specific Cooling Distribution Units (CDUs).
- Siemens: Collaborating to develop a liquid cooling and power reference architecture for 100 MW hyperscale AI data centers, integrating nVent’s liquid cooling with Siemens’ industrial power systems.
Why-to-Buy
As major players like Vertiv continue to surge, AI infrastructure expands, and the shift towards liquid cooling accelerates, demand for nVent’s core products should remain strong. Supported by strong partnerships with NVIDIA, a 42% growth in revenue YoY, and bullish outlooks from Wall Street, NVT is CFR’s pick of the week!
Disclaimer: The content published by The Colby Financial Review is for informational and educational purposes only and should not be construed as financial, investment, or trading advice. The views expressed are those of the student authors and do not reflect the views of Colby College or any affiliated institution. Readers should conduct their own research and consult with a qualified financial professional before making any investment decisions.
