Wall Street Is Obsessed With the Anthropic IPO. Here's the AI Cooling Stock Nobody Is Talking About.
Modine Manufacturing is a thermal management company that keeps data centers from overheating.
Overview
While the investing world is largely distracted by thoughts of Anthropic's potential $2 trillion IPO -- an event that's now looking likely to occur next month -- a far smaller player that has been benefiting from the AI build-out has been making gains out of the spotlight. Data center cooling provider Modine Manufacturing (NYSE: MOD) has flown under the radar, but you'll want to pay attention.
Modine transformed itself from an auto parts supplier into a thermal management company, providing technology that prevents data centers from overheating. The company's climate solutions segment is now its most powerful growth channel as it provides necessary components to hyperscalers.
Details
In Modine's most recently reported quarter (its fiscal 2027 Q1), revenue climbed 28% year over year, but its data center sales rose by 90% to $348.6 million. The company's backlog more than doubled in the same time frame. Management raised its full-year guidance, and now projects that its data center revenue will top $2 billion in fiscal 2028.
Source
Originally published at www.fool.com.
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