NVT vs. APH: Which Electrical Infrastructure Stock Has an Edge?

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]