Ideas
Overweight AI data center power industrials
She is heavily overweight the industrials tied to AI, data center, grid, and power themes; she has invested in the theme for two and a half years and done well with names like Eaton, Quanta Services, GE, Nova, Vertiv, and Rockwell, and she wants to add to names that have been hit.
Rotate Eaton into underappreciated Rockwell
She is rotating out of Eaton into Rockwell Automation because she prefers Rockwell among AI/data center/grid/power industrials. Rockwell is very underappreciated, robotics is in the second inning, organic growth accelerated from 3% in Q2 to 13% in Q3 and should continue, a new CFO is focused on margins, and she sees more operating leverage, better earnings growth, and a less discovered, cheaper valuation. Eaton remains a great company with fine fundamentals, but she prefers others.
Rotate Eaton into underappreciated Rockwell
She is rotating out of Eaton into Rockwell Automation because she prefers Rockwell among AI/data center/grid/power industrials. Rockwell is very underappreciated, robotics is in the second inning, organic growth accelerated from 3% in Q2 to 13% in Q3 and should continue, a new CFO is focused on margins, and she sees more operating leverage, better earnings growth, and a less discovered, cheaper valuation. Eaton remains a great company with fine fundamentals, but she prefers others.
Rubin chips threaten cooling industrial revenues
He warns that Nvidia's Rubin chips may require less data-center cooling, threatening revenue growth expectations for industrial cooling/power names. He thinks the market reaction is real and will continue, making Trane Technologies, Johnson Controls, Emerson, Eaton, and Vertiv risky to own; he owns Eaton and it is now a losing trade.
Buy cooling pullback on backlogs
She thinks the selloff in data cooling/power industrial names is overdone. Even if new chips require less cooling, these companies will still need cooling overall, and backlogs are strong: Vertiv's backlog rose 30% and GE's backlog rose 33% (Eaton's North America electrical backlog also rose 20%). She sees better visibility and views the pullback as an opportunity to add to these names, though she still prefers Rockwell over Eaton.
Zoetis is best-in-class animal health turnaround
She added to Zoetis, a best-in-class animal health company that was down 23% last year despite operating in a three-player industry with 20% market share and a total addressable market projected at about $200 billion by 2035. The CEO must execute this year or may be gone, and the company has five blockbuster drugs coming in the next five years, though competition like Elanco is slowly eating into it. She wants to own the best-in-class name down and out where operational growth should be above peer average, but it remains a show-me story that could get messy.
Natera leads women's health mid-market
She added to Natera because she is a big believer in women's health, and she thinks the company owns the mid-market, is growing earnings double digits, and has significantly improved gross margins from roughly 40% to 60% a decade ago.
This CNBC video, published January 07, 2026,
features Stephanie Link, Joe Terranova
discussing AI-SECTOR, ROK, ETN, TT, JCI, EMR, VRT, GE, ZTS, NTRA.
7 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Stephanie Link,
Joe Terranova
· Tickers:
AI-SECTOR,
ROK,
ETN,
TT,
JCI,
EMR,
VRT,
GE,
ZTS,
NTRA
