In this article, we will look at the 5 Best Industrial Stocks Benefiting from the Data Center Boom. Please visit the 10 Best Industrial Stocks Benefiting from the Data Center Boom if you’d like to see an extended list and methodology behind it.
5. Carrier Global Corporation (NYSE:CARR)
Potential Upside: 12.97%
Number of Hedge Fund Holders: 59
Carrier Global Corporation (NYSE:CARR) is one of the best industrial stocks benefiting from the data center boom. On May 5, Argus Research raised its price target for Carrier Global to $75 from $72, while maintaining a Buy rating on the shares, according to a report by Investing.com.
The research firm attributed the higher price target to the valuation and opportunities from the company’s recent portfolio alignment. Argus highlighted the company’s potential for data center growth as well as the recent boost in share buybacks.
On April 30, Carrier Global reported a 500% increase in data center orders in the first quarter of the year, which resulted in a 35% jump in global Commercial HVAC orders.
Earlier, on April 29, the company announced that its venture group, Carrier Ventures, expanded its investment in ZutaCore, a provider of direct-to-chip, waterless liquid-cooling solutions.
Carrier Vice President for Global Data Centers, Christian Senu, emphasized that AI is reshaping data center architecture, with thermal management emerging as a key constraint on scaling. He added:
“This investment strengthens our ability to deliver advanced liquid cooling solutions that help customers scale high-density AI infrastructure efficiently and with improved energy performance for today’s chip thermal densities and next-generation architectures.”
Based on 29 analyst ratings compiled by CNN, Carrier Global has an average price rating of $75.50, a 12.97% increase from the current price of $66.83.
Carrier Global Corporation (NYSE:CARR) is a global leader in intelligent climate and energy solutions. It offers cutting-edge advancements in climate solutions, including temperature control and air quality.
4. Eaton Corporation plc (NYSE:ETN)
Potential Upside: 17.31%
Number of Hedge Fund Holders: 87
Eaton Corporation plc (NYSE:ETN) is one of the best industrial stocks benefiting from the data center boom. On May 7, Keybanc analyst Jeffrey Hammond maintained an Overweight rating on Eaton and increased its price target to $480 from $420, according to a report by TheFly.
While acknowledging near-term margin pressure, the analyst said it is impressed by the robust underlying demand trends in the electrical sector, adding that margins are poised to improve moving forward.
Earlier on May 5, Eaton reported a 17% rise in sales in the first quarter of the year to $7.5 billion, including a 10% increase in organic sales growth. The company said its 12-month rolling average order acceleration in Electrical Americas surged 42%, driven by the momentum in data centers as well as the growth of electrical global and aerospace orders.
Out of 33 analyst ratings compiled by CNN, 70% rated Eaton Buy, while 27% rated it Hold. As of May 8, the stock has a median price target of $471, a 17.31% upside from the current price of $401.51.
Eaton Corporation plc (NYSE:ETN) is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. It makes products for the data center, utility, industrial, commercial, and institutional, machine building, residential, aerospace, and mobility markets.
3. GE Vernova Inc. (NYSE:GEV)
Potential Upside: 20.17%
Number of Hedge Fund Holders:115
GE Vernova Inc. (NYSE:GEV) is one of the best industrial stocks benefiting from the data center boom. On May 5, GE Vernova and Blue Energy announced their collaboration for the design and development of a 2.5 GW nuclear and natural gas plant in Texas.
Under the partnership, the nuclear power plant will be designed and developed using GE Vernova Hitachi Nuclear Energy’s (GVH) BWRX-300 small modular reactor (SMR) at Blue Energy’s first planned site in Texas, which is still subject to a final investment decision in 2027. The companies said they have signed a slot reservation agreement for site delivery in 2029 of two GE Vernova 7HA.02 gas turbines for early site energization.
GE Vernova Power Segment CEO Eric Gray expressed optimism for the collaboration with Blue Energy. He added:
“Combining our industry-leading HA gas turbines with the BWRX-300, the only small modular nuclear reactor under construction in the Western world today, provides an effective solution aimed to meet the demands of rapid AI expansion in the United States while decreasing time to power. Our collaboration with Blue Energy on this project exemplifies the innovative approaches required to help deliver the scale of electricity needed for this extraordinary demand.”
Based on 39 analyst ratings compiled by CNN, GE Vernova has an average price target of $1,250, a 20.17% upside from the current price of $1,040.15.
GE Vernova Inc. (NYSE:GEV) is a global energy company. It operates segments such as Power, Wind, and Electrification segments and is supported by its accelerator businesses.
2. Ecolab Inc. (NYSE:ECL)
Potential Upside: 27.84%
Number of Hedge Fund Holders:62
Ecolab Inc. (NYSE:ECL) is one of the best industrial stocks benefiting from the data center boom. On May 7, the company declared a regular quarterly cash dividend of $0.73 per common share.
The dividend covers shareholders of record at the close of business on June 16, 2026, and will be paid on July 15, 2026. Ecolab has paid cash dividends on its common stock for 89 consecutive years.
On April 28, Ecolab reported a 13% rise in adjusted diluted EPS for the first quarter of the year to $1.70. The company attributed the growth to continued strong value pricing, accelerated volume growth, and solid expansion in the operating income margin.
For the second quarter of the year, Ecolab is projecting a 7% to 12% growth in adjusted diluted EPS in the $2.02 to $2.12 range, reflecting a short transition period as benefits from the energy surcharge progressively build to offset higher commodity costs.
“As we move into the second quarter, we expect a short transition period as we absorb rising commodity costs, while the benefits from the energy surcharge progressively build. Exiting the second quarter, we expect accelerating pricing to cover the dollar impact from higher commodity costs, with gross margin stabilizing in the second half of the year. With this, along with strong new business wins and improved productivity, we expect Ecolab’s performance to strengthen in the second half of the year and are reiterating our expectation to deliver 12-15% adjusted EPS growth in 2026, excluding the impact of the recently announced acquisition of CoolIT Systems,” Ecolab chairman, president and chief executive officer Christophe Beck said.
“The pending acquisition of CoolIT is an important strategic step for Ecolab, further strengthening our Global High-Tech growth engine and extending our leadership in high-performance cooling for data centers. Our combined end-to-end cooling technologies enable leading hyperscale and colocation data centers to put more power towards computing, with less water and energy consumption. Overall, we are confident in our team’s ability to execute and deliver for customers and shareholders, supported by the strong momentum of our growth engines and solid performance in our core businesses,” he added.
Based on 29 analyst ratings compiled by CNN, Ecolab has an average price target of $325, a 27.84% upside from the current price of $254.22.
Ecolab Inc. (NYSE:ECL) is a global leader in water, hygiene, and infection prevention solutions and services. The company’s offerings integrate science-based solutions, data-driven insights, AI technology, and world-class service.
1. SPX Technologies, Inc. (NYSE:SPXC)
Potential Upside: 31.88%
Number of Hedge Fund Holders: 32
SPX Technologies, Inc. (NYSE:SPXC) is one of the best industrial stocks benefiting from the data center boom. On May 7, TheFly reported that JPMorgan increased its price target on SPX Technologies while maintaining an overweight rating on the stock following the company’s first-quarter earnings report.
Earlier, on May 4, Truist also raised its price target on SPX Technologies to $261 from $251 while reiterating a Buy rating on the stock, citing the company’s positive Q1 results.
In the first quarter of the year, SPX Technologies registered a 17.4% increase in revenues to $566.8 million while Adjusted EBITDA surged 22.9% to $126.1 million. SPX Technologies President and CEO Gene Lowe said the company continues to see healthy demand across its key end markets. He added:
“We continue to make meaningful progress on our investments in production capacity expansions that position us for sustained long-term growth in attractive end markets, including supporting the strong demand for our data center solutions. We are optimistic about the strength of customer demand and our operational momentum, and we remain well-positioned to navigate a changing tariff environment. With a solid demand backdrop and a robust pipeline of attractive acquisition opportunities, I remain highly confident in our ability to continue driving value for years to come.”
Out of 14 analyst ratings compiled by CNN, 93% rated SPX Technologies Buy, while 7% rated it Hold. As of May 8, the stock has a median price target of $267.50, a 31.88% upside from the current price of $202.84.
SPX Technologies, Inc. (NYSE:SPXC) is a diversified, global supplier of highly engineered products and technologies. The company is a leader in the HVAC and detection & measurement industries.
While we acknowledge the potential of SPXC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SPXC and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Data Center Stocks to Buy for the Long Term and 10 Best American AI Stocks to Buy Now.
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