Eaton Corporation Plcs (ETN) has experienced a considerable 12% growth in its share price over the last month. Various developments seem to be responsible for this surge, such as the departure of an executive and an investment boost predicted from data center spending, as endorsed by financial commentator, Jim Cramer. However, questions are beginning to rise concerning performance projections and rumors of a significant drop in the corporation's value by 2025. The company, although proving to be an attention magnet amongst investors, has experienced a downturn due to the perceived impacts on the AI supply chain that will be caused by slower data center expansion. While Q1 2025 saw record revenue and raised growth outlook, the company's worth to both long-term and foreign dividend investors is being questioned due to doubts in the growth outlook and market trends. The recent acquisition of Ultra PCS for $1.55B, while serving to enhance aerospace capacities for ETN and strengthen AI and data center growth forecasts has failed to prevent a 16% share price drop, caused by DeepSeek AI Model concerns over data center and chip demand.
