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Trane Technologies plc (NYSE:TT) was among Jim Cramer’s Mad Money stock calls as he urged investors to exercise caution when it comes to red-hot AI stocks. Cramer highlighted the company’s recent quarterly earnings result, as he said:

This market is full of industrials that have caught fire because they own a piece of that great data center build-out. Take Trane Technologies, TT, the climate control company with a stock that’s up nearly 24% for the year. Now, a good part of that’s because it prevents these warehouses from overheating. A little over two weeks ago, Trane reported a healthy top and bottom line beat with its backlog up a staggering 30% year over year, commercial HVAC bookings in the Americas up 40%, applied equipment orders surging 160%. The whole business is thriving, but that data center side is really on fire, one reason why management raised their full-year forecast convincingly.

Photo by Artem Podrez on Pexels

Trane Technologies plc (NYSE:TT) manufactures and services heating, ventilation, air conditioning, and refrigeration systems. The company’s business includes providing energy management solutions, building automation, and aftermarket parts.

While we acknowledge the potential of TT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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