This AI play is no longer a ‘hidden gem,’ but Wall Street is still underestimating its potential, says Melius
nVent Electric is not an under-the-radar play, but it still offers an economical way to gain exposure to the artificial intelligence-linked data center boom, according to Melius Research. The research firm initiated coverage of the electrical systems play with a buy rating. It also set a $214 price target on shares, implying 27% upside from Monday’s close. “nVent may no longer be a hidden gem, but it remains one of the cheaper AI-levered industrials, with Street forecasts that are still far too low,” analyst Jake Levinson said in a note. “NVT has managed an impressive transformation from ‘undifferentiated, low-growth electrical’ to ‘must own data center & utility supplier.” Shares have risen 70% this year as hyperscalers have pledged hundreds of billions of dollars to advance their ambitious AI data center buildouts. NVT YTD mountain nVent Electric is up roughly 70% in 2026. That outsized spending could boost nVent, which has “large and highly attractive data center exposures,” particularly due to its partnership with Nvidia to design and build physical infrastructure such as liquid cooling mechanisms for high-density AI data centers, Levinson said. Liquid cooling is one of the fastest growing areas in the AI data center sphere, according to Melius Research. “NVT was an early mover here with a business that is more established than peers, including a deep, strategic relationship with NVIDIA,” Levinson wrote. “Liquid cooling adoption is still in early innings, with industry revenues of a few billion dollars vs. hyperscaler capex spend approaching $700B this year.” Melius’ call falls in line with consensus on Wall Street. Of the 15 analysts covering nVent, 14 have a buy or strong buy on the stock, per LSEG.
