In this article, we will look at the 7 Best Liquid Cooling Stocks to Buy for AI Data Centers.
On May 9, RaeAnn Mitrione, market strategist and founding partner of Callan Family Office, appeared on a Schwab Network interview to discuss the AI trade. She noted that the technology sector has seen a big run-up since the March lows. While the technology sector had been lagging this year to some degree, Mitrione believes that there’s more room for the AI trade to continue.
She noted that the tech earnings and reports have been incredibly strong, with around 85% of the companies beating expectations. Moreover, on average, the tech earnings beats are by more than 20%. She also highlighted improved profit margins and improved productivity in the technology sector. Mitrione believes that tech and growth stocks have more runway due to the AI and data center buildout. She also highlighted that the market is diversifying and broadening out, and that she likes names in the value sector due to cheaper valuations.
With that, let’s take a look at the 7 Best Liquid Cooling Stocks to Buy for AI Data Centers.
Our Methodology
To curate the list of Best Liquid Cooling Stocks to Buy for AI Data Centers, we used ETFs, screeners, reputable financial media, and Reddit. Using these sources, we shortlisted liquid-cooling stocks most popular among hedge funds and ranked them in ascending order by this metric. We have limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
7 Best Liquid Cooling Stocks to Buy for AI Data Centers
7. Carrier Global Corporation (NYSE:CARR)
Number of Hedge Fund Holders: 59
Carrier Global Corporation (NYSE:CARR) is one of the Best Liquid Cooling Stocks to Buy for AI Data Centers. The company is recognized as a global provider of intelligent climate and energy‑management solutions, including heating, ventilation, air‑conditioning (HVAC), refrigeration, building controls, and digital services for homes. Carrier’s data‑center liquid‑cooling offerings are centered on its QuantumLeap portfolio, which provides chip‑to‑chiller integrated thermal management for modern, high‑density facilities.
Recently, on April 30, Carrier Global Corporation (NYSE:CARR) released its fiscal Q1 2026 earnings. The company posted $5.34 billion in revenue, reflecting 2.36% year-over-year growth and ahead of expectations by $326.42 million. However, the GAAP EPS of $0.28 missed expectations by $0.09.
Notably, the company’s commercial HVAC global orders increased 35% during the quarter, driven by global data center orders, which were up 500%. Management noted that the data center order backlog fully covers the targeted $1.5 billion data center sales goal for the year.
Following the release on May 1, Baird raised the firm’s price target on Carrier Global Corporation (NYSE:CARR) from $70 to $75, while keeping an Outperform rating. The firm highlighted that they updated the valuation model due to a good start to the year.
6. Ecolab Inc. (NYSE:ECL)
Number of Hedge Fund Holders: 62
Ecolab Inc. (NYSE:ECL) ranks among our Best Liquid Cooling Stocks to Buy for AI Data Centers. The company acts as a global provider of water, hygiene, and infection‑prevention solutions that protect people and critical resources such as water and energy. It is also engaged in liquid cooling for data centers through its cooling-as-a-service program, which integrates water and cooling management platforms for high‑density and AI‑driven facilities.
On May 5, the Bank of America Securities identified some mining and infrastructure companies that the firm believes are best positioned to benefit from AI data center buildout. Ecolab Inc. (NYSE:ECL) is included in the list of BofA. On April 29, the firm had lowered the price target on the stock from $345 to $335, while maintaining a Buy rating on the shares. The reduced price target was based on the firm cutting 2026 and 2027 EPS estimates to reflect the dilution in the second half of 2026 from CoolIt.
The company also released its fiscal Q1 2026 earnings on April 28. During the quarter, the company posted $4.07 billion in revenue, reflecting 10.04% year-over-year growth and surpassing estimates by $51.44 million. While the non-GAAP EPS of $1.7 was in line with the expectations, the GAAP EPS of $1.52 fell slightly short of the expectations by $0.08.
Notably, the Global High Tech and Digital segment achieved 20% year-over-year growth. Moreover, management noted that combining the Global High Tech, OVIVO, and pending CoolIT businesses is expected to form a $1.5 billion unit, which will grow at high margins of 20% to 25%. Lastly, management maintained adjusted diluted EPS growth guidance of 12% to 15% for fiscal 2026, excluding the short-term impact from the pending CoolIT acquisition.
5. Parker-Hannifin Corporation (NYSE:PH)
Number of Hedge Fund Holders: 64
Parker-Hannifin Corporation (NYSE:PH) ranks among our Best Liquid Cooling Stocks to Buy for AI Data Centers. Recently, on May 7, JPMorgan analyst Stephen Tusa lowered the firm’s price target on the stock from $1,100 to $1,060, while keeping an Overweight rating on the shares.
The rating follows Parker-Hannifin Corporation (NYSE:PH)’s FQ3 2026 earnings, released on April 30. During the quarter, the company posted $5.49 billion in revenue, reflecting 10.6% year-over-year growth and ahead of expectations by $87.3 million. Moreover, the GAAP EPS of $7.06 also topped the consensus by $0.25.
The sales of around $5.5 billion were a record high, driven 2.5% by favorable currency rate and 1.5% by acquisitions. Notably, the Aerospace backlog increased 15% year-over-year to $8.4 billion, with order growth of 14%, and double-digit OEM and aftermarket orders. Management has raised organic sales growth guidance for 2026 to 5.5% and adjusted EPS midpoint guidance by $0.50 to $31.20.
Parker-Hannifin Corporation (NYSE:PH) provides motion and control technologies, designing and manufacturing highly engineered components and systems that manage mechanical motion, fluids (liquids and gases), and thermal loads across a wide range of industries. Within data centers, the company offers core components rather than full‑stack cooling systems. Its data‑center‑related offerings are mainly in liquid‑cooling couplings, fluid‑control valves, and cold‑plate and refrigerant‑loop components.
4. Trane Technologies plc (NYSE:TT)
Number of Hedge Fund Holders: 66
Trane Technologies plc (NYSE:TT) is one of the Best Liquid Cooling Stocks to Buy for AI Data Centers. On May 1, KeyBanc raised its price target on the stock from $525 to $555, while keeping an Overweight rating on the shares.
The rating comes after the company released its fiscal Q1 2026 earnings on April 30. During the quarter, Trane Technologies plc (NYSE:TT) posted $4.97 billion in revenue, up 5.99% year-over-year, and exceeded expectations by $154.57 million. The GAAP EPS of $2.62 also topped expectations by $0.09.
Management noted reaching a record enterprise organic backlog of $10.7 billion, reflecting 24% increase year-over-year. Moreover, the American commercial HVAC bookings also grew by roughly 40%, driven by 160% increase in applied solutions bookings. Looking ahead, management projects around 10% revenue growth in Q2, and the 2026 organic revenue growth guidance has also been raised to around 7%.
Trane Technologies plc (NYSE:TT) designs and delivers heating, cooling, ventilation, and refrigeration systems for buildings, homes, and transportation. The company also provides liquid cooling technology for data centers, including Coolant Distribution Units and integrated liquid‑cooling platforms that support high‑density and AI‑driven workloads.
3. Celestica Inc. (NYSE:CLS)
Number of Hedge Fund Holders: 71
Celestica Inc. (NYSE:CLS) is one of the Best Liquid Cooling Stocks to Buy for AI Data Centers. On April 30, Bank of America Securities analyst Ruplu Bhattacharya reiterated a Buy rating on the stock with a price target of $490.
The analyst noted that the bullish sentiment is driven by the company’s consistent outperformance and growth drivers in scale-out and scale-up networking. The analyst also noted that the demand for TPU servers is increasing, which can result in sustained strength and share gains in white-box switches for Celestica Inc. (NYSE:CLS).
This bullish outlook comes after the company topped non-GAAP EPS estimates for FQ1 2026 by $0.08. The results were announced on April 27. During the quarter, revenue grew 52.8% year-over-year to $4.05 billion and the non-GAAP EPS came in at $2.16.
The management has noted significant strength to its FY27 revenue forecasts, particularly as the demand for liquid cooling, rack-scale AI, and co-packaged optics demand ramps up. Ruplu Bhattacharya from BofA finds the revenue surprise to be smaller due to order-timing and highlighted that management raised 2026 guidance by $2 billion.
Celestica Inc. (NYSE:CLS) provides supply chain solutions to equipment manufacturers and service providers across the globe. The company’s operations are divided into the Advanced Technology Solutions (ATS) and Connectivity and Cloud Solutions (CCS) segments.
2. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 87
Eaton Corporation plc (NYSE:ETN) is one of the Best Liquid Cooling Stocks to Buy for AI Data Centers. On May 7, KeyBanc analyst Jeffrey Hammond raised the firm’s price target on Eaton Corporation plc (NYSE:ETN) from $420 to $480, while maintaining a Buy rating on the shares.
The rating comes after the company released its fiscal Q1 2026 earnings on May 5. During the quarter, the company reported $7.45 billion in revenue, reflecting 16.8% year-over-year increase and ahead of expectations by $308.44 million. The GAAP EPS of $2.22 missed expectations by $0.24, but the non-GAAP EPS of $2.81 was ahead of the consensus by $0.08.
Analyst Jeffrey Hammond noted that he acknowledges the short-term margin pressure after Q1 earnings but emphasized that underlying demand in the Electrical segment remains very strong, supported by solid orders. The analyst expects margins to improve over time, driven by increased demand. He is also more confident in the long-term story, highlighting powerful structural tailwinds in data centers and utilities.
Lastly, the analyst anticipates that current margin headwinds tied to capacity investments should ease in the second half of 2026, creating room for earnings to beat current estimates.
Eaton Corporation plc (NYSE:ETN) is an intelligent power‑management company that designs and manufactures products and systems to manage electrical, hydraulic, and mechanical power safely and efficiently. The company also provides thermal monitoring for critical electrical equipment, helping prevent overheating and unplanned outages in infrastructure such as switchgear, transformers, and data‑center power systems.
1. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 112
Vertiv Holdings Co (NYSE:VRT) is one of the Best Liquid Cooling Stocks to Buy for AI Data Centers. Recently, on April 27, the company announced a major strategic acquisition of Strategic Thermal Labs. Strategic Thermal Labs specializes in advanced liquid‑cooling technology for servers, and this deal is expected to strengthen the company’s heat management capacity in high‑density data center environments.
Management noted that data center environments, especially those running AI and high-performance computing, consume more power and generate more heat than traditional workloads. The acquisition of Strategic Thermal, Vertiv Holdings Co (NYSE:VRT) will enable it to improve how liquid cooling inside servers interacts with the broader cooling and power infrastructure across an entire data center.
Moreover, Strategic Thermal brings expertise in cold‑plate design, server‑side liquid cooling, and testing solutions under real high‑density conditions. This is expected to help Vertiv better simulate and validate how systems behave thermally and electrically, leading to more reliable, efficient designs over a system’s lifecycle.
Vertiv Holdings Co (NYSE:VRT) is a global leader in critical digital infrastructure that specializes in power, cooling, and IT infrastructure solutions and services for data centers, communication networks, and commercial and industrial environments.
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