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CLEVELAND - Intelligent power management company Eaton, a prominent player in the Electrical Equipment industry with a market capitalization of $141 billion, announced Tuesday it is collaborating with NVIDIA to enable the transition to high-voltage direct current (HVDC) power infrastructure in artificial intelligence data centers.
The partnership focuses on developing design best practices, reference architectures and power management solutions specifically tailored for high-density GPU deployments, including NVIDIA Kyber rack-scale systems with NVIDIA Rubin Ultra GPUs. A key aspect of the collaboration involves leading the shift to 800V HVDC power infrastructure to support racks requiring 1 megawatt of power and beyond. According to InvestingPro data, Eaton maintains strong financial health with sufficient cash flows to cover its operations and investments.
As a member of the NVIDIA Partner Network, Eaton will leverage its power management expertise to design systems supporting AI workloads across the entire power ecosystem. The companies are also exploring opportunities to incorporate Eaton’s solutions in the NVIDIA Omniverse Blueprint for AI factory design and operations.
"With our decades of expertise in electrical power management innovation and broad solution portfolio, Eaton is uniquely positioned to support the demands of data centers in the AI era," said Heath Monesmith, president and chief operating officer of Eaton’s Electrical Sector.
Eaton’s approach addresses both white and gray space optimization in AI data centers through intelligent power distribution systems, backup power solutions, and digital offerings. The company also provides consultative services for customers implementing NVIDIA-based technologies.
According to the press release, worldwide data center capital expenditure is projected to exceed $1 trillion by 2029 as operators invest in infrastructure capable of supporting training and inference workloads for evolving AI models.
Eaton reported revenues of nearly $25 billion in 2024 and serves customers in more than 160 countries. The company’s stock is trading near its 52-week high of $380, though InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors seeking detailed insights can access comprehensive analysis and 16 additional ProTips through the Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Eaton Corporation reported nearly $25 billion in revenues for 2024, with 76% of its net sales coming from sustainable products and solutions. The company has committed to becoming net zero by 2050 and has invested $1.7 billion in research and development for sustainable solutions since 2020. Eaton has also announced an agreement to acquire Ultra PCS Limited for $1.55 billion, a move expected to enhance its aerospace systems portfolio. This acquisition is anticipated to be accretive to Eaton’s margins and is projected to close in the first half of 2026. Additionally, Eaton has secured contracts worth approximately $25 million to upgrade the electrical infrastructure at Hartsfield-Jackson Atlanta International Airport. In another development, Bernstein has rated Eaton as Outperform, citing its potential to benefit from anticipated increases in capital expenditure in the utility sector. Eaton also announced an $18.5 million expansion of its Orchard Park, New York, facility, which will add 77 skilled manufacturing jobs. This expansion aims to meet the growing demand for aerospace mission systems solutions.
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