Amazon is still my favorite mega-cap here, with AWS growth showing that AI spending is turning into real revenue. But at this stage of the cycle, I’m more interested in the companies supplying the infrastructure behind AI.
Eaton is a good example. Data centers need massive amounts of electricity, power management and grid infrastructure, so rising AI capex directly creates demand for Eaton’s products and services.
I’m still bullish on the AI-capex cycle, but I don’t expect the rally to be a straight line. Valuations are higher, so earnings, backlog and cash-flow growth will matter more.
My pick: ETN. AI is no longer just about chips and GPUs — the next big opportunity could be the infrastructure needed to power the entire AI ecosystem.
@TigerPicks [龇牙]
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