Growth and Momentum in Data Center and Power Utilities Lifted nVent Electric (NVT) in 2025

Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Value Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in undervalued companies with solid financial health and compelling business economics. US equities continued to advance in the fourth quarter of 2025, despite volatility. At the start of the quarter, a government shutdown unsettled investors and delayed key economic data, raising questions about the Federal Reserve’s easing timeline. However, as the quarter progressed, risk appetite increased, and clarity around monetary policy improved, leading the Fed to implement rate cuts and end quantitative tightening. This suggests a continued easing of financial conditions into 2026. While AI remained a key focus, markets diversified in November, with value and non-AI stocks leading. This could indicate a shift in market leadership moving forward. Mid-cap stocks lagged large caps in Q4, particularly on the growth side, as the Russell Midcap® Growth Index declined 3.7% while mid-cap value posted a modest gain and outperformed the growth index for the quarter and full year. In the quarter, the fund’s Investor Class fund ARTQX returned 1.53%, Advisor Class fund APDQX posted a return of 1.54%, and Institutional Class fund APHQX returned 1.63%, compared to a 1.42% return for the Russell Midcap Value Index. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Artisan Mid Cap Value Fund highlighted stocks like NVent Electric plc (NYSE:NVT). NVent Electric plc (NYSE:NVT) is an industrial technology company that provides solutions for electrical connection and protection products. The one-month return of NVent Electric plc (NYSE:NVT) was 3.91%, and its shares gained 115.33% of their value over the last 52 weeks. On March 31, 2026, NVent Electric plc (NYSE:NVT) stock closed at $118.28 per share, with a market capitalization of $19.13 billion.

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

“Our top contributors in 2025 were aforementioned Expedia and NVent Electric plc (NYSE:NVT), a provider of electrical connections and protection solutions. Organic sales growth has been driven by momentum in its data center and power utilities businesses. nVent has a leading position in liquid cooling solutions, a small piece of its overall revenue mix, which have experienced strong demand as hyperscalers invest huge sums to build out AI infrastructure. Liquid cooling is used in data centers to manage the heat generated by high-performance computing, including AI. As AI usage grows, these solutions are increasingly important for energy efficiency, sustainability and cost management. Prior to the April selloff, nVent’s stock fell in sympathy with other AI beneficiaries after the emergence of the Chinese DeepSeek AI model temporarily spooked markets. We added to our position at that time as there was little evidence of a change in the company’s fundamental underpinnings. Rapid growth in the business over the past few years has been supported by multiple secular tailwinds—electrification, clean energy, energy efficiency, digitalization and onshoring, to name a few—in addition to AI. 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.”