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Is GTX a good stock to buy? We came across a bullish thesis on Garrett Motion Inc. on Gabriel’s Substack by Gabriel Cortes. In this article, we will summarize the bulls’ thesis on GTX. Garrett Motion Inc.'s share was trading at $32.81 as of June 9th. GTX’s trailing and forward P/E were 19.17 and 18.05 respectively according to Yahoo Finance.

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GTX is a historically boring turbocharger manufacturer that the market still prices as a mid-cycle automotive supplier, but beneath the surface it is increasingly levered to data center power and cooling infrastructure through its oil-free foil bearing and high-speed turbomachinery platform. That same technology stack is now monetized through two underappreciated channels: MEG turbochargers used in large-bore backup generators and oil-free centrifugal compressors for HVAC systems, both directly tied to data center buildouts.

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MEG already generated over $100M in 2025, with management explicitly linking demand to data center emergency power and guiding double-digit growth in 2026, while ASPs on large gensets are materially higher than automotive turbos, creating a step-change in content per unit. In parallel, GTX’s exclusive partnership with Trane Technologies channels its oil-free compressor platform into commercial cooling systems, with a 2027 production ramp and exposure to data centers, battery storage, and industrial cooling, representing a potential >$180M revenue stream by decade-end.

These two vectors sit alongside optional fuel cell compressor applications that reinforce the same oil-free air-bearing moat and broaden long-term non-automotive exposure. Despite this, consensus still assumes ~4% growth and assigns a compressed multiple, leaving GTX trading at ~11.4x forward earnings and an ~11% free cash flow yield supported by a $250M buyback authorization and a 75% free cash flow return policy.

Peer Accelleron trades near 26x on similar turbomachinery exposure, highlighting the mispricing. Even assuming a conservative rerating to 20x earnings, GTX screens toward a ~$34 per share target, without requiring aggressive growth assumptions, with capital return discipline and industrial exposure providing meaningful downside support.

Previously, we covered a bullish thesis on Garrett Motion Inc. (GTX) by Maksim in May 2025, which highlighted margin expansion, tariff pass-through strength, and growing exposure to hybrid and REEV powertrains. GTX’s stock price has appreciated by approximately 191.38% since our coverage. Gabriel Cortes shares a similar view but emphasizes on data center-driven turbomachinery demand, MEG generators, and oil-free HVAC compressor optionality.

Garrett Motion Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held GTX at the end of the first quarter which was 43 in the previous quarter. While we acknowledge the risk and potential of GTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GTX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.