Benzinga·2025-12-23 20:34Core Insights - The industrial sector is emerging as a key player in the high-growth AI infrastructure market as it approaches 2026, with power generation, transmission, and cooling being critical components for AI data centers [1] Company Summaries - GE Vernova: Positioned as a leader in AI power infrastructure, GE Vernova aims for $52 billion in revenue by 2028, supported by a significant backlog [2] - Vertiv: Specializes in cooling systems for AI chips, with a $9.5 billion backlog and a 28% year-over-year organic revenue growth at the end of 2025, as liquid cooling becomes standard [4][8] - Eaton: A global leader in electrical switchgear and transformers, Eaton is expected to benefit from long-term growth trends in AI infrastructure, with a $1.2 billion capacity expansion underway [5][8] - Quanta Services: Controls the largest private workforce of high-voltage linemen in North America, with a $39.2 billion backlog driven by utility-scale grid modernization projects [9][11] - Honeywell: Focused on becoming a pure-play leader in industrial automation and energy software, with a major aerospace spin-off planned for the second half of 2026 [10][11] Analyst Insights - GE Vernova: Analyst Colin Rusch upgraded the stock with a price target of $855, noting hyperscalers account for over one-third of recent orders [7] - Vertiv: Evercore ISI raised its price target to $210, highlighting its role as a key player in the AI era [8] - Eaton: UBS reiterated a "Buy" rating, emphasizing long-term structural growth trends in AI infrastructure [8] - Quanta Services: JPMorgan upgraded the stock to "Overweight" with a $515 target, citing its unique position to serve large-load customers [11] - Honeywell: RBC Capital upgraded Honeywell to "Outperform," with a price target of $253, following its strategic portfolio streamlining [11]