Wall Street Is Obsessed With the Anthropic IPO. Here's the AI Cooling Stock Nobody Is Talking About.
Key PointsModine anticipates its data center revenue will top $2 billion in its fiscal 2028.
While the investing world is largely focused on the potential $2 trillion IPO of Anthropic, a smaller player in the AI build-out has been gaining attention - Modine Manufacturing. This data center cooling provider, listed on the NYSE under the ticker symbol MOD, has been quietly making strides in the market.
Modine Manufacturing made a significant shift in its business model, moving away from being an auto parts supplier to becoming a thermal management company. This transformation has placed them at the forefront of providing technology that prevents data centers from overheating, a crucial need for hyperscalers in the AI industry.
In their latest reported quarter, the fiscal 2027 Q1, Modine's revenue increased by 28% compared to the previous year. Notably, their data center sales surged by 90% to reach $348.6 million. Moreover, their backlog more than doubled during the same period.
Management of Modine Manufacturing has raised their full-year guidance, projecting that their data center revenue will surpass $2 billion in fiscal 2028. Despite being overshadowed by larger players like Anthropic, Modine Manufacturing is carving out a significant position in the AI-powered data center cooling sector.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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