10 Trending AI Stocks on Wall Street

8. Eaton Corporation plc (NYSE:ETN)

Number of Hedge Fund Holders: 74

Eaton Corporation plc (NYSE:ETN) is one of the 10 Trending AI Stocks on Wall Street. On September 12, BNP Paribas Exane analyst Andrew Buscaglia reiterated an Outperform rating on the stock with a $413.00 price target.

According to the analysts, Oracle’s remarkable backlog demonstrates how big the AI-driven growth opportunity is. A similar surge is anticipated for Eaton in its order backlog as customers spend more on equipment needed to power AI data centers.

“We view Oracle’s backlog, supported by multi-year contracts, as a leading indicator of demand for ETN, and believe it implies a sustained opportunity through 2030 as AI data centers are installed and powered in perpetuity. ETN has underperformed ytd (up ~9% vs S&P 500 up 12%), but we expect valuation to begin to reflect order growth potential in coming quarters. We reiterate our Outperform. Given Oracle’s inflection, we revisited our model and conclude our DC revenue CAGR of >20% through 2030 is achievable. Our Bull Case (35%) is strengthened, while our Bear Case (~11%) seems more unlikely. ETN trades at a P/E of 26x, just a slight premium to peers at 24.5x, although we expect the multiple to re-rate higher as AI-workload DC orders accelerate and backlog inflects.”

Eaton Corporation plc (NYSE:ETN) is a global power management company offering electrical, aerospace, vehicle, and eMobility solutions.