This niche AI play is seeing business growth rates that are triple the pace of the data centers
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
AI and Data Center Cooling Market Growth: Companies like nVent Electric, Vertiv, and Modine Manufacturing are experiencing significant stock growth in 2024 due to the rising demand for liquid cooling solutions in data centers driven by AI advancements, with nVent's shares up 23% and Vertiv and Modine soaring 133% and 125%, respectively.
Shift from Air to Liquid Cooling: The traditional air cooling methods are becoming inadequate for the high-density computing power generated by AI technologies, prompting a shift towards liquid cooling systems, which are 25 times more effective; analysts predict that liquid cooling will be used in 25% of all data centers by 2028.
Analyst Views on NVT
Wall Street analysts forecast NVT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVT is 130.86 USD with a low forecast of 114.00 USD and a high forecast of 140.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 112.660
Low
114.00
Averages
130.86
High
140.00
Current: 112.660
Low
114.00
Averages
130.86
High
140.00
About NVT
nVent Electric plc is a global provider of systems protection and electrical connection solutions. The Company designs, manufactures, markets, installs and services high performance products and solutions that connect and protect some of the sensitive equipment, buildings and critical processes. The Company operates through two segments: Systems Protection and Electrical Connections. The Company’s Systems Protection segment provides solutions to help protect electronics, systems and data in mission-critical applications, including data centers, that improve reliability and energy efficiency. It also includes enclosures, switchgear and bus systems businesses. Its Electrical Connections segment provides solutions that connect power and data infrastructure. Its offerings enhance end user safety, reduce installation time and provide resiliency for critical systems. Its robust portfolio of electrical product brands includes nVent CADDY, ERICO, HOFFMAN, ILSCO, SCHROFF and TRACHTE.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
