In this piece we will look at the 5 Best Liquid Cooling Stocks to Buy for AI Data Centers. Please visit 7 Best Liquid Cooling Stocks to Buy for AI Data Centers if you’d like to see an extended list and how we came up with the list of Best Liquid Cooling Stocks to Buy for AI Data Centers.
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.
While we acknowledge the potential of VRT 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 VRT and that has 100x upside potential, check out our report about the cheapest AI stock.
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