Eaton Corporation plc (ETN): Industrial Firm Growing Dominant in Liquid Cooling

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 risk and potential of ETN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ETN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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