We recently published a list of 15 AI News Investors Are Paying Attention To. In this article, we are going to take a look at where Eaton Corporation plc (NYSE:ETN) stands against other AI news investors are paying attention to.
The United States and China are locked in a battle for AI supremacy and both countries are doubling down on their AI bets to future-proof their economies. Latest reports from news agency Reuters suggest that a US congressional commission has proposed a Manhattan Project-style initiative to fund the development of AI systems that will be as smart or smarter than humans.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, financial markets around the world are preparing for NVIDIA to release earnings results. The chipmaker is the poster child of the AI revolutions and the quarterly numbers from the company have ramifications for businesses around the world. The company is expected to release earnings figures after the close of trading on November 20. Joshua Meyers, an executive director at JPMorgan, has said that analysts are expecting the chipmaker to widely beat expectations through the results. He also highlighted the importance of guidance numbers and the commentary of Jensen Huang, the CEO of the firm, on future plans.
READ ALSO: 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A technician standing in the middle of a power station, inspecting a power distribution system.
Number of Hedge Fund Holders: 90
Eaton Corporation plc (NYSE:ETN) operates as a power management company worldwide. The primary AI catalyst for the firm is sales of data center equipment. It makes and sells electrical components used in data centers across the globe. UBS analyst Amit Mehrotra recently assumed coverage of the stock with a Buy rating with a price target of $431, up from $330. Eaton can sustain high single digit revenue growth for several years to come, driven by data center growth, electrification trends and reshoring of manufacturing capacity, the analyst told investors in a research note. Additionally, UBS believes the company’s earnings can reach $17 per share in 2028, 4% above consensus, with upside to $19.
Overall, ETN ranks 9th on our list of AI news investors are paying attention to. While we acknowledge the potential of ETN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ETN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.