Goldman Sachs has downgraded Legrand from "buy" to "neutral," signaling growing caution around the French electrical equipment maker's technology exposure. The move comes after Legrand's shares surged 31% since Goldman added them to its Buy List in April 2024, significantly outpacing the broader European market. Analysts cited increased uncertainty stemming from recent AI developments announced by Nvidia, which could impact demand for Legrand's low-voltage products like power distribution units and air cooling equipment.

While Goldman still expects Legrand to ride the data center wave through 2027, the brokerage lowered its earnings forecasts and trimmed the 12-month price target to €126 from €146. This downgrade reflects a broader reassessment of how AI infrastructure shifts might affect traditional suppliers. Legrand is scheduled to provide its 2026 guidance on February 12, where investors will look for clarity on whether the company can maintain its 7.7% organic growth pace in a rapidly evolving tech landscape.