Should You Hold nVent Electric (NVT)?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The growth stock trade that had driven U.S. stocks higher since late 2022 came undone in the first quarter of 2025. In the quarter, the fund’s Investor Class fund ARTQX returned -1.03%, Advisor Class fund APDQX posted a return of – 0.97%, and Institutional Class fund APHQX returned -0.97%, compared to a -2.11% return for the Russell Midcap Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Artisan Mid Cap Value Fund highlighted stocks such as NVent Electric plc (NYSE:NVT). NVent Electric plc (NYSE:NVT) designs, produces, distributes, installs, and services electrical connection and protection products. The one-month return of NVent Electric plc (NYSE:NVT) was 9.02%, and its shares lost 13.66% of their value over the last 52 weeks. On June 3, 2025, NVent Electric plc (NYSE:NVT) stock closed at $66.22 per share, with a market capitalization of $10.9 billion.

Artisan Mid Cap Value Fund stated the following regarding NVent Electric plc (NYSE:NVT) in its Q1 2025 investor letter:

“Our biggest detractors included Bio-Rad Laboratories, NVent Electric plc (NYSE:NVT) and Polaris. Shares of nVent Electric, a provider of electrical connections and protection solutions, were caught up in the selloff of AI beneficiaries. We added to our position on weakness as there hasn’t been any significant change in the company’s fundamental underpinnings. Strong growth in the business over the past few years has been supported by multiple secular tailwinds, including electrification, clean energy, energy efficiency, AI, digitalization and onshoring, to name a few. The company has also executed well, allocating capital wisely by deploying free cash flow into product development, accretive M&A and return of capital via dividends and share repurchases. The data solutions business (~14% of sales) has been and is expected to be a key source of growth over the next few years driven by the acceleration in AI infrastructure investment and the company’s leading position in liquid cooling solutions. Liquid cooling is growing 3X the rate of legacy cooling and is still only a small portion of how data centers are cooled today.”

Is Nvent Electric plc (NVT) the Best Electrical Equipment Stock to Buy Now?

A workman standing next to a newly constructed wall, showcasing the company’s electrical enclosures.

NVent Electric plc (NYSE:NVT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held NVent Electric plc (NYSE:NVT) at the end of the first quarter, which was 48 in the previous quarter. NVent Electric plc’s (NYSE:NVT) first quarter sales increased 11% year-over-year to $809 million. While we acknowledge the potential of NVent Electric plc (NYSE:NVT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered NVent Electric plc (NYSE:NVT) and shared the list of best electrical equipment stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.