$ETN

UBS estimates 30% of U.S. data-center capacity planned for 2028 may be at risk, impacting AI-related companies like NVIDIA (NVDA). NVIDIA's growth depends on new data centers, with Q2 2027 Data Center revenue at $89.023B, up 117% YoY. Shares fell 21.4% over the past month. Broadcom (AVGO) and others also cited supply constraints. Analysts debate NVIDIA's revenue estimates for 2028, ranging from $506.483B to $778.471B.

Eaton Corporation (ETN) reported record Q3 2026 sales of $8.9B, up 28% YoY, with a 46% surge in Electrical backlog. Demand is driven by data centers, grid modernization, and industrial electrification. However, supply-chain issues and capacity expansion costs may impact margins. ETN shares are up 2.7% YTD, trading at a 20.79X P/E.

Eaton reported Q3 2026 sales of $8.9B, up 28%, with organic growth of 19%. Earnings per share were $2.77 (GAAP) and $3.68 (adjusted). Segment margins hit 25.3%, with strong demand in electrical businesses. The company raised full-year organic growth guidance to 13-15%.

Eaton (ETN) stock fell 20.7% in a month, despite Q3 2026 revenue growth of 28% and raised full-year guidance. Management expects 14% organic growth and $13.75 adjusted EPS. Data centers are shifting to DC power, which could impact Eaton's sales timing. The company leads in current data center designs and has 10 pilots for DC technology. Electrical Americas, its largest segment, grew 22% organically in Q3 2026, led by 54% data center sales growth.

Eaton Corp. CEO Paulo Ruiz highlighted the shift from AC to DC systems in data centers, driven by AI and efficiency gains. The company's solid-state transformers (SSTs) could reduce non-IT capital costs by 18%, per McKinsey. Eaton reported Q3 2026 sales of $8.9B, up 28% YoY, with strong demand from data centers and utilities.

Eaton's stock dropped 6.8% in after-hours trading, losing about $10 billion in market value, closing near $350.35. Investors will watch if the stock can reclaim its $376 open price in the next session.

Stocks rose post-midterms, with S&P 500 up 1.7%. Oil prices fell 8%, boosting housing and retail stocks. Data center stocks declined on regulatory concerns. Intel CEO bought shares. CVS Health removed from watchlist due to spin-off plans. Earnings expected from McKesson, Qualcomm, and others.

Wall Street rallied post-midterm elections, but AI-related stocks showed mixed performance. Cloud giants like Amazon (up 7%), Microsoft (up 6%), and Alphabet (up 4%) gained, while smaller AI infrastructure providers like CoreWeave (down 10%) and Iren (down 11%) fell. Analysts noted potential slowdowns in data center buildout due to Democratic wins, impacting AI-related investments.

RBC Capital maintained its Outperform rating on Eaton Corp and increased its price target to $539 from $526, suggesting a 37.6% upside from the Nov 3 close of $391.70. Recent analyst price targets for the company range from $485 to $526.

Wells Fargo kept its Overweight rating on Eaton Corp but reduced its price target to $485 from $503, a 3.6% decrease. The new target suggests a 23.8% upside from the Nov 3 close of $391.70.