Core Insights - The individual has retired after over 43 years in investment research, now operating independently to provide actionable investment insights [1] - The focus is on rules/factor-based equity investing strategies, emphasizing the use of numbers to inspire human intelligence-driven investment stories rather than serving the numbers themselves [1] - The approach combines factor analysis with classic fundamental analysis to uncover the true story of a company and its stock, highlighting the importance of future potential over past data [1] Experience and Background - The individual has extensive experience covering a wide range of stocks, including large cap, small cap, micro cap, value, growth, and special situations [1] - Previous roles include managing a high-yield fixed-income fund and conducting research on quantitative asset allocation strategies, contributing to the development of Robo Advising [1] - The individual has authored two books on stock selection and analysis and has a passion for investor education, having conducted numerous seminars [1]

Summary of Key Points from the Conference Call Industry Overview - The discussion centers around the HVAC (Heating, Ventilation, and Air Conditioning) industry and liquid cooling technologies, particularly in relation to NVIDIA's new Vera Rubin chip platform [1][2]. Core Insights 1. **Advancements in Liquid Cooling**: NVIDIA's CEO announced that the new Vera Rubin chips can be cooled using liquid cooling systems instead of traditional water chillers, which has implications for HVAC OEMs [1]. 2. **Market Reaction**: Following the announcement, HVAC OEMs such as Johnson Controls (JCI), Trane Technologies (TT), and Carrier Global (CARR) experienced a sell-off, while liquid cooling companies like nVent Electric (NVT) and Vertiv (VRT) saw modest gains [1]. 3. **Continued Need for Traditional Chillers**: Despite the advancements, traditional chillers remain essential for cooling data centers, especially during peak temperature days, indicating that the sell-off of HVAC OEMs may have been unwarranted [2]. 4. **Collaboration with Chip Manufacturers**: HVAC OEMs are actively collaborating with chip manufacturers on next-generation technology roadmaps, exemplified by TT's partnership with NVIDIA on a thermal management system for AI infrastructure [2]. 5. **Future of Liquid Cooling**: The need for advanced liquid cooling technologies is expected to grow as next-generation chips will have significantly higher compute capacities, necessitating continued innovation in cooling solutions [2]. 6. **Two-Phase Cooling Adoption**: The CES announcement may accelerate the adoption of two-phase cooling technologies, which are anticipated to be more energy-efficient than current single-phase systems [2]. 7. **Investment Activity**: JCI's investment of approximately $25 million in Accelsius, a leader in dual-phase cooling, highlights the industry's shift towards more advanced cooling solutions [2]. Additional Considerations 1. **Short-Term Market Volatility**: The industry has seen several short-term sell-offs due to new technology developments, which have historically provided "buy the dip" opportunities for investors [2][6]. 2. **Earnings Outlook**: The upcoming 4Q earnings reports are expected to address the resilience and growth potential of both HVAC OEMs and liquid cooling companies, which could influence market sentiment [2]. 3. **Valuation and Risks**: - nVent Electric (NVT) is rated as a Buy with a 12-month price target of $145, based on a multiple of 21.0x EBITDA [10]. - Vertiv (VRT) is also rated as a Buy with a price target of $204, based on a multiple of 23x EBITDA [11]. - Carrier Global (CARR) and Johnson Controls (JCI) are rated as Buy with price targets of $68 and $137, respectively, while Trane Technologies (TT) is rated Neutral with a price target of $458 [13][15][16]. Conclusion - The developments at CES 2026 signal a transformative period for the HVAC and liquid cooling industries, with significant implications for market dynamics and investment opportunities. The ongoing collaboration between HVAC OEMs and chip manufacturers, along with advancements in cooling technologies, will be critical in shaping the future landscape of the industry [2].

Core Insights - Artisan Mid Cap Value Fund's Investor Class returned 0.97%, Advisor Class returned 0.98%, and Institutional Class returned 0.97% in Q3 2025, underperforming the Russell Midcap Value Index which returned 6.18% [1] - The equity markets rallied in Q3 2025, driven by strong corporate earnings, rising AI capital expenditures, and expectations of economic support from US fiscal policy and lower interest rates [1] Company Highlights - NVent Electric plc (NYSE:NVT) was highlighted as a top contributor in the fund's performance, with a one-month return of -0.27% and a 52-week gain of 49.75% [2] - NVent Electric's stock closed at $106.82 on January 02, 2026, with a market capitalization of $17.24 billion [2] - The company reported strong organic sales growth, particularly in its data center and power utilities businesses, which contributed to its stock performance [3] - NVent Electric has a leading position in liquid cooling solutions, which are increasingly important for energy efficiency and sustainability in AI infrastructure [3] - The company has benefited from multiple secular tailwinds including electrification, clean energy, energy efficiency, digitalization, and onshoring, alongside AI growth [3] - NVent Electric has effectively allocated capital towards product development, M&A, and returning capital to shareholders through dividends and share repurchases [3]

Core Insights - nVent Electric (NVT) and Amphenol (APH) are key players in the electrical equipment and connectivity industry, benefiting from increasing demand for data centers, electrification, and industrial upgrades [1][3] nVent Electric Overview - nVent Electric specializes in electrical enclosures, connections, and protection products for industrial, commercial, and infrastructure markets, including data centers [2] - The company is experiencing strong demand from data center customers, particularly due to the rise in artificial intelligence (AI) workloads, with organic orders increasing approximately 65% year over year in Q3 2025 [4] - nVent Electric's backlog grew in double digits sequentially in Q3 2025, indicating a solid base for future revenues [4][7] - The company is expanding its capacity with a new facility in Minnesota set to double its liquid cooling production by early 2026 [6] - The Zacks Consensus Estimate for nVent Electric's total revenues in 2025 is $3.83 billion, reflecting an 11.1% year-over-year increase, with projections for 2026 indicating a 14.8% growth to $4.39 billion [7] Amphenol Overview - Amphenol designs and manufactures electrical, electronic, and fiber-optic connectors and interconnect systems for various industrial and technology applications [2] - The IT datacom unit of Amphenol surged in Q3 2025, becoming its largest end market with a 128% year-over-year growth in sales [11] - Amphenol's products are critical for AI systems, facilitating efficient data transfer and power capacity, which is essential as AI workloads increase [12] - The company expects IT datacom revenues to more than double in full-year 2025, supported by strong customer relationships and early involvement in system design [13][14] - The Zacks Consensus Estimate for Amphenol's total revenues in 2025 is $22.74 billion, indicating a 49.4% year-over-year increase, with projections for 2026 showing a 12.4% growth to $25.56 billion [15] Comparative Analysis - nVent Electric faces margin pressures from tariffs and inflation, which negatively impacted adjusted operating income by $45 million in Q3 2025 [10] - In contrast, Amphenol is experiencing faster growth, particularly in its IT datacom business, which is now its largest revenue source [23][24] - nVent Electric's shares have gained 6.2% over the past three months, while Amphenol's shares have risen 8.9% [20] - Currently, nVent Electric trades at a forward sales multiple of 3.79X, while Amphenol trades at 6.25X, reflecting higher growth expectations for Amphenol [22]

Core Viewpoint - nVent Electric plc announced a quarterly cash dividend of US$0.21 per ordinary share for Q1 2026, marking a 5% increase from the previous dividend of US$0.20 per share [1] Company Overview - nVent is a leading global provider of electrical connection and protection solutions, focusing on inventive electrical solutions that enhance safety and security [2] - The company designs, manufactures, markets, installs, and services high-performance products that protect sensitive equipment, buildings, and critical processes [2] - nVent's portfolio includes well-known brands such as nVent CADDY, ERICO, HOFFMAN, ILSCO, SCHROFF, and TRACHTE, with a history spanning over 100 years [2]

Company Overview - nVent Electric plc (NYSE:NVT) is recognized as one of the top 10 Data Center Cooling Companies to invest in [1] - The company is headquartered in London, United Kingdom, and employs over 11,000 people globally [3] Financial Performance - Barclays raised its price target for nVent from $130 to $140, maintaining an overweight rating [1] - Management expressed confidence in strong, improving margins in the core business segment, indicating resilience against the focus on AI and data centers [3] Strategic Direction - At the 2025 Goldman Sachs Industrials and Materials Conference, management highlighted a strategic pivot towards becoming a data center infrastructure company, anticipating significant growth in this area [2] - The new modular cooling and power portfolio is designed to meet the increasing demand driven by AI technologies [2] Product Innovation - nVent's liquid cooling solutions were showcased at the SC25 event on November 17, emphasizing the company's commitment to innovation for next-generation AI chips [2] - The company is collaborating with chip manufacturers and the broader ecosystem to address unique customer challenges with its new liquid cooling and power solutions [2]

Core Insights - nVent Electric is experiencing strong demand from data center customers, primarily driven by growth in artificial intelligence (AI) workloads, with organic orders increasing by approximately 65% in Q3 2025 [1][11] - The company has visibility into 2026, with some programs extending into 2027, indicating firm customer spending plans and a solid backlog that grew in double digits sequentially in Q3 [2] Company Performance - Liquid cooling is a key growth driver, with less than 10% of data centers currently utilizing this technology, but the demand is expected to rise due to new graphics processing unit chips requiring advanced cooling solutions [3] - nVent Electric has over a decade of experience in liquid cooling and has deployed more than 1 gigawatt of cooling capacity [3] - A new facility in Minnesota is set to double the company's liquid cooling production capacity by early 2026 [4] - nVent Electric has joined NVIDIA's partner network, enhancing its visibility among global AI infrastructure customers [4][11] Market Trends - The overall trend in AI infrastructure and liquid cooling demand appears robust, with nVent Electric's backlog and customer pipeline suggesting continued growth in data center demand [5] - The Zacks Consensus Estimate for nVent Electric's total revenues for the full year 2025 is projected at $3.83 billion, reflecting a year-over-year increase of 11.1% [5] Competitive Landscape - nVent Electric competes with companies like Vertiv and Hubbell in the electrical and data center markets [6] - Vertiv is advancing large-scale power architectures for AI workloads and is expected to release new power systems in the second half of 2026 [7] - Hubbell reported high single-digit organic growth in its Electrical Solutions segment, driven by strong demand from data center projects [8] Financial Metrics - nVent Electric's shares have increased by 57.2% year to date, outperforming the Zacks Electronics - Miscellaneous Components industry's growth of 50.7% [9] - The company trades at a forward price-to-sales ratio of 3.99X, which is higher than the industry average of 2.31X [12] - The Zacks Consensus Estimate for nVent Electric's earnings per share (EPS) implies year-over-year growth of 33.7% for 2025 and 19.5% for 2026, with upward revisions in EPS estimates over the past 60 days [13]

Core Viewpoint - nVent Electric plc is highlighted as a strong investment opportunity, particularly due to its growth prospects in the data center and power infrastructure segments, which are expected to drive significant sales growth [1][2]. Group 1: Company Performance and Outlook - UBS initiated coverage of nVent Electric with a Buy rating and a price target of $128, citing optimism about the company's future driven by improving demand in key segments [1]. - The company is projected to achieve annual organic sales growth exceeding 10% through 2027, with sales and earnings per share expected to surpass consensus estimates by approximately 300 basis points [2]. Group 2: Product Development and Innovation - nVent is addressing the growing demand for data centers by launching a new liquid-cooling solution specifically designed for AI data centers, which includes upgraded hardware such as coolant distribution units and next-gen power distribution units [3][4]. - The company is collaborating with Siemens on a reference architecture for hyperscale AI cooling and contributing to Project Deschutes with a Google-aligned CDU design, indicating a strong focus on innovation in cooling solutions [4]. Group 3: Company Overview - nVent Electric designs, manufactures, markets, installs, and services high-performance electrical connection and protection solutions, with applications across data centers, industrial facilities, and buildings [5].

Summary of Global Data Centre Equipment Market Conference Call Industry Overview - The report focuses on the **Global Data Centre Equipment** market, providing an updated outlook and analysis of key players across the value chain [2][3]. Market Growth Forecast - The **Data Centre equipment market** (including grey, white, and cooling segments) is projected to grow by **20-25% in 2026**, **15-20% in 2027**, and **10-15% annually from 2028 to 2030**. The estimated growth for 2025 is around **25-30%** [3][39]. - The **Cooling segment** is expected to grow at a **CAGR of approximately 20%** until 2030, with **Liquid Cooling** projected to grow by **45%** [3][39]. Pricing Dynamics - A **20% increase** in market **$/MW** is anticipated due to higher power density rack architectures, primarily driven by cooling and grey space [4][28]. - The **IT equipment $/MW** is expected to rise by **3-4 times**, which explains the rapid capital expenditure (capex) ramp by hyperscalers and reduces price sensitivity towards facility costs [4][28]. AI Adoption and Monetization - There is evidence of rapid adoption of **Generative AI (GenAI)**, with an annual recurring revenue (ARR) of **$17 billion**, representing **6-7%** of the current total SaaS market [5][26]. - Hyperscalers' **Capex/Sales** ratio is projected to more than double compared to 2023, reaching **25-30%**, raising questions about sustainability. However, even with 2026 estimates, capex is expected to represent **75%** of the industry's operating cash flow [5][26]. Key Players and Stock Recommendations - In **Europe**, preferred companies include **Schneider**, **Halma**, **Siemens**, **Prysmian**, and **Wartsila**. - In the **US**, favored companies are **Vertiv**, **Eaton**, **nVent**, **GE Vernova**, and **Comfort Systems**. - In **Asia**, **Delta Electronics** and **Envicool** are highlighted as key players [6][39]. Capacity and Demand Insights - The **Global Data Centre Capacity** is expected to grow significantly, with **24% year-over-year growth** in 2026 and a **21% CAGR from 2025 to 2029** [50][56]. - The **Tech 6** companies (Amazon, Microsoft, Google, Meta, Oracle, and Apple) are projected to account for **10%** of total US electricity demand by 2030, with their incremental demand surpassing the entire US utility-scale solar industry by 2028 [56][58]. Challenges and Risks - Potential risks include project delays, cancellations, and the need for stable grid connections, particularly in Europe where connections are quoted into the 2030s [57][58]. - The industry has faced equipment shortages, particularly in electrical equipment, but this has returned to normal as manufacturers ramped up capacity [57]. Conclusion - The **Global Data Centre Equipment** market is poised for significant growth driven by AI adoption, increased demand for cooling solutions, and substantial capital investments from hyperscalers. However, challenges related to infrastructure and supply chain must be monitored closely to ensure sustainable growth [5][56][57].

Core Insights - nVent is positioned as a leader in connection and protection, focusing on electrification, sustainability, and digitalization trends [2] - The company has reported a significant year-to-date acceleration with 25% net sales growth in the first three quarters of the year [4] Financial Performance - nVent has achieved almost 30% growth in earnings per share (EPS) and a strong increase of 34% in free cash flow [4] - The company operates primarily in the Americas, with over 80% of its revenue generated from this region [4] Business Segments - nVent's business is divided into two segments: 2/3 systems protection and 1/3 electrical connection [3] - The infrastructure vertical is the leading segment, accounting for 43% of revenue, followed by industrial at 30%, commercial, residential, and energy [3]