The growing need to feed power-hungry artificial intelligence models could benefit an under-the-radar power management stock, according to Wall Street analysts.
Last year, Eaton also said that data centers and IT accounted for 14% of revenues.
Ahead of Eaton's quarterly print, Bank of America analyst Andrew Obin highlighted the stock as a "pure-play electrical equipment" with high-growth businesses beyond data centers.
"While data center remains the strongest end market, it seems that other end markets (residential, distributed IT) improved more than expectations to drive beats," he wrote.
Elsewhere, Mizuho's Brett Linzey highlighted Eaton's "extended revenue visibility" given its "mega projects" aimed at meeting reshoring and data center needs.
Persons:
Eaton, Craig Arnold, Andrew Obin, Mizuho's Brett Linzey
Organizations:
Wall Street, Bank of America, ETN
Locations:
Eaton, U.S