Core Insights - The AI boom is supported by robust physical infrastructure, including data centers and essential components from companies like Amphenol, Vertiv, and Quanta Services [1][2] Company Summaries Amphenol - Amphenol specializes in electrical, electronic, and fiber optic connectors, holding a 33% market share in AI and data center interconnects, making it a key player in infrastructure [3] - In Q1 2025, Amphenol reported record results with sales in its communications solutions segment increasing due to AI-related demand, projecting revenue to reach $26.9 billion by 2028, reflecting an annual growth of about 12.7% [4] - The stock has doubled year-to-date, trading at a forward P/E of around 36, indicating strong investor recognition and potential for sustained growth in AI infrastructure spending [5] Vertiv - Vertiv provides power, cooling, and IT infrastructure solutions essential for data centers managing AI's energy-intensive workloads, including liquid cooling systems and high-density racks [6] - In 2025, Vertiv has accelerated deployments of OCP-compliant power and cooling ecosystems to meet gigawatt-scale AI demands, raising its full-year outlook multiple times due to surging AI data center orders [7]

Core Insights - nVent Electric (NVT) is set to report its third-quarter 2025 results on October 31, with expected sales growth of 27% to 29%, driven by acquisitions and foreign exchange [1][9] - The Zacks Consensus Estimate for third-quarter revenues is $1.01 billion, reflecting a year-over-year increase of 7.15%, while earnings are estimated at 88 cents per share, indicating a 4.76% growth [2] - nVent has consistently exceeded earnings expectations in the past four quarters, with an average surprise of 3.52% [2] Sales and Earnings Expectations - NVT anticipates adjusted EPS between $0.86 and $0.88, representing a 38% increase from the previous year [1] - Organic sales growth is projected to be between 11% and 13% [1] Key Growth Drivers - The infrastructure segment, particularly data centers and power utilities, is expected to significantly contribute to NVT's performance [3] - The ongoing AI build-out is increasing demand for innovative power and cooling solutions, with liquid cooling systems growing three times faster than traditional solutions [4] Impact of Acquisitions - Recent acquisitions of Trachte and Electrical Products Group (EPG) are expected to enhance NVT's performance by strengthening its position in high-growth infrastructure sectors [5][9] - These acquisitions have also contributed to a substantial backlog, which is anticipated to drive revenue growth [5] Backlog and Future Revenue Visibility - NVT's backlog has increased over four times year-over-year in Q2 2025, particularly in Systems Protection and data solutions, providing visibility into future revenues [6] - Despite strong performance expectations, NVT may face challenges from inflation, tariffs, and softer demand in industrial and commercial residential markets [6] Earnings Expectations Model - nVent Electric has a positive Earnings ESP of +1.30% and a Zacks Rank of 2 (Buy), indicating a favorable outlook for an earnings beat [7]