Eaton Corporation plc's (ETN) continues to draw investor attention with a 3.4% increase over the past week despite a recent market cap drop of US$17b; long-term gains are expected to stay positive. Q1 2025 earnings highlighted record revenue and a raised growth outlook. Continued concerns over the impact on the AI supply chain from a slowdown in data centre expansion has led to a 16% drop in shares. Meanwhile, the corporation maintains its appeal as a non-tech and environmental stock for long-term investments. Analysts remain optimistic about AI-driven data centre growth as an essential factor in the company’s future performance. Investors have recently shown an increased interest in Eaton, likely influenced by their record Q1 2025 results and raised full-year organic growth guidance. Despite the allure, the corporation reports some underperformance compared to its competitors on a recent Wednesday. Eaton is also focusing power and speed on a new data centre expansion in partnership with Siemens Energy. ETN looks forward to a strong profit in 2025 due to the anticipated demand from AI data centres. Notwithstanding these strengths and opportunities, some insiders have reportedly sold their shares. Jim Cramer and other analysts assert that ETN is 'well-positioned for outsized earnings growth in the years ahead.'
