2 Under-the-Radar AI Data Center Stocks to Buy Now
Trane Technologies (TT) stock rose 16.92% YTD, driven by strong demand for HVAC and data center cooling. Q2 revenue was $6.4B (+11% YOY), EPS $4.31 (+11.1% YOY). Guidance raised to 11.5% revenue growth, EPS $15.20-$15.30. Eaton (ETN) stock up 33% YTD, Q2 revenue $8.5B (+21.4% YOY), EPS $3.15 (+6.4% YOY). Both companies pay dividends and have strong backlogs.
How this was made
The 30-second read
Why it matters
Both companies delivered earnings beats and raised guidance, likely prompting analyst upgrades and price appreciation.
Market read
Strong earnings and guidance lifts for TT and ETN underscore robust demand in AI‑related infrastructure, offering potential trading opportunities.
What to watch
Potential supply‑chain constraints or macro‑economic slowdown could temper demand for HVAC and power‑management equipment.
Background
The article profiles two large‑cap U.S. stocks positioned as beneficiaries of AI data‑center growth, summarizing recent earnings and guidance updates.
Ticker impact
TT reported Q2 2026 results with revenue $6.4B (+11% YoY) and EPS $4.31, raising full-year guidance to $15.20‑$15.30 per share.
Potential upside of 15‑20% over the next weeks if market digests the guidance lift.
Guidance lift and beat are fresh primary disclosures for a large-cap industrial stock.
ETN posted Q2 2026 results with revenue $8.5B (+21.4% YoY) and EPS $3.15, and raised FY EPS outlook to $3.46‑$3.56.
Possible 10‑15% rally as analysts upgrade targets.
Fresh earnings numbers and guidance lift for a major power‑management company.
Market effects
Both results highlight strong demand for AI data‑center cooling and power infrastructure, boosting the industrial and power‑management sectors.
U.S. industrial equities may see buying pressure, while global data‑center supply chains could benefit.
Reinforces broader AI‑driven infrastructure investment trends worldwide.
Counterpoint
Valuations remain high (30‑32x forward PE) and could limit upside if growth slows.
Key entities
- CompanyTrane Technologies
Industrial HVAC manufacturer (ticker TT).
- CompanyEaton Corporation
Power‑management firm (ticker ETN).
