Eaton: Rotating Within The AI Infrastructure Play

Eaton stands out as a prime beneficiary of the AI infrastructure buildout, driven by surging data center and power equipment demand. I expect money to rotate from overheated chip and memory stocks into infrastructure names addressing current bottlenecks: power, cooling, and grid expansion.

ETN's Electrical Americas segment posted 16% revenue growth in 2025 and a 31% YoY backlog increase, signaling robust AI-driven demand. Wave 2 investment opportunities include ETN, VRT, GEV, PWR, MYRG, and utilities like CEG, VST, and NEE as AI infrastructure spending accelerates.

In my last Seeking Alpha article, I argued that AI investing would become increasingly rotational as the industry worked through one bottleneck after another. My view was that capital would flow to whichever part of This article was written by Todd Feldman 408 Followers Follow Dr. Feldman is a finance professor and CFA holder. Dr. Feldman provides investment advice and publishes investment papers.