Brokers recommend trading individual electronics stocks, highlighting DELTA and SMT as key beneficiaries of AI tailwinds

LG Energy Solution announced that its Battery Energy Storage System has qualified as NVIDIA DSX Ready BESS, making it part of NVIDIA's first-ever DSX Ready program. The qualification confirms the AC-coupled energy storage solution meets applicable NVIDIA DSX reference design requirements for AI factories, helping customers bring capacity online faster while addressing AI load smoothing, voltage ride-through, and power reliability. The product is built on modular 2.5 MW / 5.1 MWh battery blocks that allow scalable deployments and rapid capacity expansion, with an integrated AC architecture designed to meet applicable UL and NFPA requirements. Backed by a fully localized North American value chain spanning cell manufacturing, pack production, and system integration, LG Energy Solution plans to secure more than 50 GWh of LFP battery cell production capacity by the end of 2026 through its network of five regional production facilities. Chang Beom Kang, Head of ESS Battery Division at LG Energy Solution, said being selected as a partner for NVIDIA's first-ever DSX Ready program validates the strength and competitiveness of the company's BESS products.

Eaton CEO Paulo Ruiz told investors at Morgan Stanley's 14th Annual Laguna Conference on September 16 that the company is targeting the high end of its 11%–13% organic growth guidance for 2026, sending shares up about 7.9% over five trading days to close at $424.77 on September 18. Ruiz said Eaton expects to have added roughly $10 billion in revenue between 2024 and 2026, about 10 times the top-line growth of the prior decade, with data center demand driving most of that increase as orders climbed about 85% and revenue rose roughly 65%. Eaton's globally announced project pipeline has accelerated to 342 gigawatts from the 307 gigawatts cited on the second quarter earnings call, and the company raised projected 2026 sales for its Boyd Thermal unit to $1.8 billion from $1.1 billion. Eaton reported second quarter 2026 revenue of $8.53 billion, up 21% year over year, with adjusted earnings per share of $3.15 and segment margins of 23.1%. Analysts responded positively, with Baird initiating coverage at Outperform with a $500 target, RBC Capital raising its target to $512 from $484, Evercore ISI upgrading to Outperform with a $502 target, and BMO Capital and Citi moving to $487 and $485 respectively, giving Eaton an average 12-month price target of $510.

Wall Street analysts are sharply divided on GE Vernova, with price targets on the power and grid technology company spanning from $470 to $1,450 a share. GLJ Research analyst Gordon Johnson recently initiated coverage with a sell rating and a $470 price target, about 50% below the stock's recent trading price of around $940 and below its 52-week low of $530 hit last November, citing a roughly 39-times forward earnings multiple he considers unjustified for a cyclical company. Guggenheim's Joseph Osha holds the Street-high target of $1,450, nearly 55% above the recent share price, based on hyperscaler demand for transformers and gas turbines, margin expansion from a higher-priced backlog, and multi-decade cash flow from long-term service agreements. The average analyst price target is over $1,200 a share, and of the nearly 40 analysts covering the stock, 30 rate it a buy or higher while all others except Johnson rate it a hold. The company's orders surged 88% in the second quarter to $24.2 billion, it booked $5 billion of data center orders in the first half, and its gas power equipment backlog and slot reservation agreements grew to 116 GW from 100 GW, with CEO Scott Strazik expecting 125 GW by year-end.