We just covered the 12 Best AI Data Center Stocks to Buy Right Now and Eaton Corporation plc (NYSE:ETN) ranks 6th on this list.
Last month, Eaton Corporation plc (NYSE:ETN) officially established a dedicated Data Center segment, following its $9.5 billion acquisition of Boyd’s thermal business. This move signals that the company is no longer just selling parts but providing integrated power and cooling solutions specifically for AI. With AI chips now exceeding 1,000W, traditional air cooling is failing, and investors are buying Eaton shares because the Boyd acquisition gives the company a dominant position in liquid cooling, which is expected to be a standard requirement for all new AI data centers by 2027.
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The Electrical Americas segment of Eaton Corporation plc (NYSE:ETN) has emerged as a leading indicator of US infrastructure health. In early 2026, the firm reported that sales in this segment jumped 16%, driven by what management called unprecedented data center momentum. There is mega-project momentum behind the shares as well. Eaton has a $13.3 billion backlog and is the primary electrical provider for several mega-projects – data centers and semiconductor plants exceeding $1 billion in cost – which provides revenue visibility through 2028. Eaton has matched or exceeded Wall Street earnings estimates for four consecutive quarters. Wall Street expects the firm’s EPS to grow by 13%–15% annually through 2027, a growth rate more typical of a software company than a 100-year-old industrial firm.
While we acknowledge the potential of ETN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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