Is Carrier Global's (CARR) AI Bet on Data Center Cooling a New Chapter in Its Growth Story?

• Earlier this month, Carrier Global introduced its QuantumLeap™ suite of AI-powered thermal management solutions for data centers at Data Centre World Asia, alongside the Asia launch of its liquid cooling technology, and announced the Board's decision to maintain its quarterly dividend at US$0.225 per share, payable on November 18.
• This marks a meaningful expansion into the booming data center cooling market, highlighting Carrier's focus on energy efficiency and AI-driven infrastructure amid surging regional investment and sustainability demand.
• We'll now explore how Carrier Global’s advanced AI-powered cooling suite for data centers could influence the company’s long-term investment narrative.

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Carrier Global Investment Narrative Recap

To own Carrier Global, investors must have confidence in the company’s ability to grow within intelligent climate and energy solutions, leveraging innovation in sectors such as data center cooling. The recent launch of the QuantumLeap suite expands Carrier’s position in the AI-driven data center market, but does not materially alter the main short-term catalyst: capturing market share in high-margin, energy-efficient technology. Risks such as persistent tariff exposure and softer demand in key regional segments remain the most significant pressures on earnings, and these are unchanged by the latest announcements.

The debut of the QuantumLeap platform, which integrates AI-powered liquid cooling and predictive maintenance, is especially relevant as energy efficiency and operational uptime become priorities for modern data centers. This product launch aligns with the company’s focus on differentiated solutions and service growth, underpinning the potential for future revenue streams in a sector experiencing significant investment.

By contrast, it’s important for investors to be aware of ongoing risks from tariff exposure that could impact Carrier Global’s margins if cost mitigation strategies prove insufficient…

Read the full narrative on Carrier Global (it's free!)

Carrier Global's narrative projects $26.7 billion revenue and $2.9 billion earnings by 2028. This requires 5.9% yearly revenue growth and a $1.4 billion increase in earnings from the current $1.5 billion.

Uncover how Carrier Global's forecasts yield a $77.18 fair value, a 36% upside to its current price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community range from US$26.44 to an outlier above US$50,000, reflecting very different views on Carrier Global’s outlook. While many expect future earnings growth driven by data center and energy efficiency innovation, consider how risk factors like ongoing tariff pressures could also shape your expectations for Carrier’s performance.

Explore 5 other fair value estimates on Carrier Global - why the stock might be worth less than half the current price!

Build Your Own Carrier Global Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Carrier Global research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Carrier Global research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Carrier Global's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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