Renewed AI Optimism Boosted Eaton Corp. PLC (ETN) in Q2

Macquarie Asset Management, an investment management company, released its “Macquarie Core Equity Fund” investor letter for the second quarter of 2025. A copy of the letter can be downloaded here. The US large-cap equity market surged in Q2 2025, with the S&P 500® Index rising 10.94%. The equity market’s strength was due to reduced concerns over the possibility of President Trump quickly imposing harsh tariffs. Later, the administration put a pause on the tariff implementation. In this environment, the Macquarie Core Equity Fund’s Institutional Class returned 11.94% surpassing the benchmark, the S&P 500 Index. Eighty percent of the relative performance was driven by sector selection, and individual security selection accounted for the remainder. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Macquarie Core Equity Fund highlighted stocks such as Eaton Corporation plc (NYSE:ETN). Eaton Corporation plc (NYSE:ETN) is a global power management company. The one-month return of Eaton Corporation plc (NYSE:ETN) was 6.81%, and its shares gained 12.30% of their value over the last 52 weeks. On September 18, 2025, Eaton Corporation plc (NYSE:ETN) stock closed at $371.27 per share, with a market capitalization of $144.535 billion.

Macquarie Core Equity Fund stated the following regarding Eaton Corporation plc (NYSE:ETN) in its second quarter 2025 investor letter:

“Eaton Corporation plc (NYSE:ETN) performed well during the quarter. The maker of electrical equipment for critical end markets including power generation, transmission, datacenters, and industrial and corporate applications rebounded on renewed AI optimism. The company also maintains a strong aerospace components business likely to benefit from growth in aircraft production and continued refurbishment of older aircraft.”

Eaton Corporation PLC (ETN) Will Benefit From Data Center Spending, Says Jim Cramer

Eaton Corporation plc (NYSE:ETN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 74 hedge fund portfolios held Eaton Corporation plc (NYSE:ETN) at the end of the second quarter, down from 85 in the previous quarter. In Q2 2025, Eaton Corporation plc (NYSE:ETN) reported revenue of $7 billion and expanded margins by 20 basis points to 23.9%. While we acknowledge the risk and potential of Eaton Corporation plc (NYSE: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 Eaton Corporation plc (NYSE:ETN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Eaton Corporation plc (NYSE:ETN) and shared the list of AI stocks you should not ignore. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.