Electrical equipment suppliers like Legrand and Schneider are benefiting from the rapid growth of AI data centers, with over 20% of their revenues coming from this sector. Fair value estimates for Legrand and Schneider have been raised, with Schneider being the preferred exposure to the AI theme. Revenue outlook for both companies has been increased, driven by demand from data center customers. Legrand is considered overvalued, while Schneider is viewed as fairly valued. Both companies are expected to benefit from the expected threefold increase in US data center capacity, as AI data centers require more electrical and power equipment than traditional data centers.

Read more at Morningstar: Legrand and Schneider Are the Biggest Beneficiaries of AI Data Center Demand