Most investors are watching AI stocks and interest rates.
But a different kind of shift is forming - one that starts underground.
Copper. It's in your smartphone, the power grid, data centers, and more.
And according to the International Copper Study Group, the global copper market is on track for a 150,000-ton deficit in 2026.
Why? Mining is getting harder due to ore degradation - miners have to move more rocks to actually get the copper.
But that’s not all
One of the world's largest copper mines - Cobre Panamá - shut down in 2023.
And, China, which produces roughly 45% of the world's refined copper, is facing its own trade tensions with the U.S.
The result? A supply crunch is forming. And some companies are positioned to benefit from it.
Eaton Corporation (ETN) is potentially one of them.
The company produces critical infrastructure for our nation’s grid that uses copper.
Typically, a supply shortage like what we could see with copper would mean prices rise.
But the key word is critical - which may mean that Eaton is more resistant to price rises than other companies, despite a copper shortage.
Let’s break down
But first: How do our analysts spot investment opportunities like Eaton and others?
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What Is ETN Stock?
Eaton Corporation is a power management company. It makes the transformers, switchgears, and electrical components that keep the U.S. power grid running.
In short: if power moves through it, Eaton probably made a piece of it.
That matters right now for two big reasons.
1. The power grid needs serious upgrades.
In 2022, the Inflation Reduction Act (IRA) pushed $739 billion into clean energy and grid improvements. That kicked off a wave of demand for Eaton's products.
Then in 2025, President Trump's One Big Beautiful Bill Act rolled back much of the IRA.
Federal support dropped.
But here's the thing - the power grid still needs to be upgraded.
States are now largely funding those improvements themselves. So demand didn’t go away, it just shifted.
2. AI is making it worse - in a good way for Eaton.
Data centers and AI infrastructure are growing fast. All of that computing power needs reliable electricity.
That means more transformers, more switchgears and ultimately more of what Eaton makes.
Eaton sits at the intersection of two massive tailwinds: a grid that needs upgrading and an AI boom that's straining it.
Why a Copper Shortage Could Help ETN
Here's the counterintuitive part.
When copper gets scarce, prices go up. Companies that use copper in their products typically see costs rise.
That usually squeezes margins.
But Eaton makes products that are considered critical infrastructure. Utilities and data centers need many of its products in order to operate.
That gives Eaton pricing power most companies don't have.
So while a copper shortage could hurt many manufacturers, companies supplying essential, copper-dependent products may actually hold their ground - or benefit - as demand stays firm and supply tightens.
What the Financials Say
Eaton's numbers back up the story.
The company earned nearly $25 billion in revenue in 2024 - a 7% increase from 2023.
In 2025, Eaton raised both its earnings per share (EPS) guidance and organic sales guidance.
ETN stock is up roughly 15% year-to-date as of February 27th, 2026 - outpacing the S&P 500 in that timeframe.
Our analysts believe it’s possible that Eaton is undervalued right now - as the market is not yet pricing in the copper shortage.
Eaton also carries a long backlog of orders that stretches beyond its current inventory.
That's a sign of durable demand - and it helps the company forecast revenue with more confidence than most.
| Metric | Data |
| 2024 Revenue | ~$25 billion |
| YoY Revenue Growth | +7% |
| YTD Share Performance (Feb 2025) | ~15% |
| 2026 ICSG Copper Deficit Forecast | 150,000 metric tons |
The Risk to Know
No opportunity is without risk.
Eaton is exposed to copper prices on the cost side. If the shortage hits faster than expected, input costs could rise before the company can fully pass them along.
There's also policy risk. Grid upgrade spending depends on state budgets, which are harder to predict than federal funding.
If spending slows, so does Eaton's backlog growth.
And if scientists develop a viable copper alternative something no one has done yet - the copper shortage thesis weakens entirely.
These aren't reasons to ignore ETN stock. They're reasons to understand it fully before making any decision.
Bottom Line on ETN Stock
The copper shortage isn’t here yet - but that’s the opportunity.
Eaton Corporation (ETN) is a steady, established company that builds the products our power grid literally cannot run without.
As copper gets scarcer and AI drives more demand for grid upgrades, Eaton could move from quiet performer to a standout.
Patience is required - this is a long-term shift, not a short-term trade.
But for investors who want exposure to the infrastructure backbone of the AI era, ETN stock is worth keeping in mind this year.
What other stocks may be worth keeping in mind? Our Head of Investment Research shares how he spots opportunities in this free podcast.
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