Advertisement
Singapore markets closed
  • Straits Times Index

    3,300.00
    -4.00 (-0.12%)
     
  • S&P 500

    5,491.65
    +4.62 (+0.08%)
     
  • Dow

    38,898.60
    +63.74 (+0.16%)
     
  • Nasdaq

    17,867.66
    +5.43 (+0.03%)
     
  • Bitcoin USD

    64,880.09
    -96.42 (-0.15%)
     
  • CMC Crypto 200

    1,347.02
    -35.65 (-2.58%)
     
  • FTSE 100

    8,267.59
    +62.48 (+0.76%)
     
  • Gold

    2,371.80
    +24.90 (+1.06%)
     
  • Crude Oil

    82.16
    +0.59 (+0.72%)
     
  • 10-Yr Bond

    4.2750
    +0.0580 (+1.38%)
     
  • Nikkei

    38,633.02
    +62.26 (+0.16%)
     
  • Hang Seng

    18,335.32
    -95.07 (-0.52%)
     
  • FTSE Bursa Malaysia

    1,592.69
    -7.10 (-0.44%)
     
  • Jakarta Composite Index

    6,819.32
    +92.40 (+1.37%)
     
  • PSE Index

    6,344.56
    -21.47 (-0.34%)
     

Is Eaton Corp Plc (NYSE:ETN) The Best AI Data Center Stock to Buy According to Billionaire Steve Cohen?

Insider Monkey recently analyzed billionaire Steve Cohen’s latest portfolio to see some of his top AI stock picks.

Since Eaton Corp Plc (NYSE:ETN) ranks 9th in our list of the 10 Best AI Stock Picks of Billionaire Steve Cohen, the stock deserves a detailed look.

Billionaire Steve Cohen is one of the few hedge fund managers who almost always dazzles with his outperformance and prescient bets. Cohen, who also owns The New York Mets, founded SAC Capital back in 1992, and since then through 2009 lost money only once. A Bloomberg report earlier this year said that Point72 Asset Management has been able to raise so much cash recently that it’s starting to decline external money. The fund has reportedly raised about about $12.8 billion since 2020.

Point72’s main fund returned about 11% in 2023, and 12% in the previous year.

ADVERTISEMENT

Billionaire Steve Cohen’s Point72 Asset Management runs a highly diversified portfolio. As of the end of the March quarter, the portfolio’s net worth was over $41.2 billion, with tech stocks accounting for 17% of the total portfolio.

Unlike long-term value investors like Warren Buffett and Seth Klarman, Cohen moves with speed and adapts quickly. He’s been like this for decades. When he was in Wharton School of the University of Pennsylvania, he would often skip classes to watch stock movements at a local brokerage. He took pride in predicting stock movements based on their direction.

Steven Cohen of Point72 Asset Management

Eaton Corp Plc (NYSE:ETN)

Steve Cohen's Q1'2024 Stake: $91,671,522

Power management company Eaton Corp Plc (NYSE:ETN) is one of the pick-and-shovel names that are getting a boost thanks to the AI revolution. As more and more companies deploy data centers to power their AI software, the demand for sustainable power solutions is rising, helping company like Eaton Corp Plc (NYSE:ETN).

Bank of America recently said in a note that data centers, manufacturing and AI would cause demand growth from an "already-tight electrical grid." BofA analysts believe solar and wind energy cannot meet this growing appetite and investors are currently be incorporating energy sources that might not be there in the future. To profit from this growing energy demand, BofA recommended some stocks, and Eaton Corp Plc (NYSE:ETN) was one of them.

ClearBridge Sustainability Leaders Strategy made the following comment about Eaton Corporation plc (NYSE:ETN) in its Q3 2023 investor letter:

“While renewable stocks have come under pressure of late, energy efficiency and decarbonization remain strong drivers for our industrials holdings, where Eaton Corporation plc (NYSE:ETN) and Trane Technologies (TT) were strong contributors. Eaton, whose electrical equipment enables the electrification of the power grid and electrical vehicle charging infrastructure, is benefiting from tax incentives supporting clean energy, growth in reshoring and expanding manufacturing in North America and the need for grid resiliency amid broad demand for electrification.”

          Eaton Corp Plc (NYSE:ETN) ranks 9th in the list of the 10 Best AI Stock Picks of Billionaire Steve Cohen.             Click to see the complete list of 10 Best AI Stock Picks of Billionaire Steve Cohen.         If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.       READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.     Disclosure: None. Is Eaton Corp Plc (NYSE:ETN) The Best AI Data Center Stock to Buy According to Billionaire Steve Cohen? was originally published on Insider Monkey