10 AI Stocks on Analysts’ Radar As AI Spending Grows

6. Carrier Global Corporation (NYSE:CARR)

Number of Hedge Fund Holders: 48

Carrier Global Corporation (NYSE:CARR) is a global leader in climate and energy solutions, including heating, ventilation, air conditioning (HVAC) and refrigeration. By diversifying its cutting-edge, energy-efficient cooling solutions line, Carrier is setting itself up for substantial growth in the global data centre cooling market, which is expected to reach $20 billion by 2029. The company has already unveiled Carrier QuantumLeap, a purpose-built solution designed to support the rapidly expanding data centre industry amid the AI boom.

Similarly, Wolfe Research upgraded the stock from ‘Peer Perform’ to ‘Outperform’ on February 24, with an $80 price target. Analysts believe Carrier Global Corporation (NYSE:CARR) is on track for growth as management aims to achieve key goals, including earnings per share of $2.95 to $3.05 in FY25. Nevertheless, the research firm has warned that acquiring the German manufacturer of boilers and heat pumps, Viessmann Climate Solutions, poses significant risks, especially on potential tariffs on European imports under the Trump administration.

“Changes to heat pump subsidy frameworks in Europe, and Germany in particular, could weigh on VCS growth potential (even after sales declined 22% during full-year 2024,” according to Wolfe. “Uncertainty regarding the German election has been an overhang. However, we view the likely next chancellor, Friedrich Merz, as a rational, pro-business and EU-centric politician.”

Carrier Global has invested in ZutaCore, a company specializing in liquid cooling technology for data centers, to meet the cooling demands of high-density computing. This collaboration aims to provide sustainable and energy-efficient cooling solutions for next-generation AI and data processing workloads.