"Airedale by Modine is well-positioned for the industry's shift toward higher temperature and higher heat density thermal architectures," said Art Laszlo, Group Vice President, Global Data Centers at Modine. "Alongside our air-cooled chillers with free cooling, we offer a full range of solutions including dry coolers, air handling units (AHU), coolant distribution units (CDU), and intelligent controls to optimize efficiency across diverse designs. We're also advancing our immersion cooling capabilities to s ...

Core Viewpoint - Modine's shares experienced a 4.3% increase, closing at $125.14, following significant trading volume and notable capacity expansion progress [1][2] Group 1: Company Performance - Modine has initiated chiller production at its Grenada, MS facility, with two out of five planned production lines operational [2] - The Franklin, WI plant is expected to start initial data center product production in the fiscal third quarter, while the Jefferson City, MO site will launch two of its four chiller lines in the fiscal fourth quarter [2] - The company is projected to report quarterly earnings of $1.02 per share, reflecting a year-over-year increase of 10.9%, with revenues anticipated at $763.38 million, a 23.8% rise from the previous year [3] Group 2: Earnings Estimates and Market Sentiment - The consensus EPS estimate for Modine has been revised 1.7% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] - Modine currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook in the market [5] Group 3: Industry Context - Modine is part of the Zacks Automotive - Original Equipment industry, which includes other companies like LCI, that has also shown positive performance with a 1.8% increase in the last trading session [5]

Company Performance - Modine's stock has decreased by 7.92% to $119.68 in the latest session, underperforming the S&P 500, which lost 0.34% [1] - Over the past month, Modine's stock has dropped by 15.03%, significantly worse than the Auto-Tires-Trucks sector's loss of 1.39% and the S&P 500's gain of 1.19% [1] Upcoming Earnings - Modine's upcoming EPS is projected at $1.02, reflecting a 10.87% increase compared to the same quarter last year [2] - Revenue is expected to reach $763.38 million, indicating a 23.77% growth year-over-year [2] Full Year Projections - For the full year, earnings are projected at $4.63 per share and revenue at $3.04 billion, representing increases of 14.32% and 17.58% respectively from the previous year [3] - Recent changes to analyst estimates for Modine suggest evolving short-term business trends, with positive revisions indicating analyst optimism [3] Valuation Metrics - Modine's Forward P/E ratio is currently 28.06, which is a premium compared to the industry average of 13.89 [6] - The company has a PEG ratio of 0.83, lower than the industry average PEG ratio of 1.01 [6] Industry Ranking - The Automotive - Original Equipment industry, part of the Auto-Tires-Trucks sector, has a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Modine Manufacturing Company ( MOD ) is one of the companies that will probably benefit from the AI infrastructure expansion. Unfortunately, it is also an area of the value chain that could potentiallyMy primary area of concentration will be on identifying companies of exceptional caliber, with a proven ability to reinvest capital for impressive returns. The ideal scenario is for these companies to demonstrate a long-term capability of capital compounding, with a high enough compound annual growth rate to p ...

Group 1: Market Reaction - Shares of Modine Manufacturing Co. experienced a significant decline, dropping as much as 21% before closing about 7.5% lower [1] - Other companies in the water-cooled systems sector, including Johnson Controls International PLC, Trane Technologies PLC, and Carrier Global Corp., also saw declines of up to 6.2% [1] Group 2: Technological Developments - Nvidia announced a new generation of computer chips that will not require traditional cooling systems, which is expected to impact the demand for water-cooled systems [2] - The new Rubin platform will feature "extreme codesign" that integrates chips, trays, racks, and more, as stated by Nvidia's CEO Jensen Huang [2] Group 3: Industry Innovations - Nvidia's introduction of a 100% liquid-cooled system is described as a breakthrough, which has raised concerns among investors regarding the future relevance of chillers in data centers [3]

Core Viewpoint - Nvidia CEO Jensen Huang's remarks at CES 2026 have significantly impacted the stock market, leading to a surge in storage-related stocks while causing declines in data center cooling stocks [1][2]. Group 1: Storage Stocks Surge - SanDisk's stock price soared nearly 28% to $349.63 per share, reaching a market cap of $51.24 billion, marking a tenfold increase since February of the previous year [2][4]. - Huang emphasized the untapped potential of the storage market, predicting it could become the largest global storage market to support AI workloads, with current demand exceeding existing infrastructure capabilities [4]. - Other storage companies like Western Digital, Seagate, and Micron also saw significant stock price increases, with Western Digital up 16.77% to $219.38, Seagate up 14% to $330.42, and Micron up 10% to $343.43, all achieving double-digit percentage gains [6][7]. Group 2: AI-Driven Hardware Spending - The growth in AI training and inference demand is leading to tight memory supply and rising prices, boosting digital storage stocks [12]. - Analysts predict that companies will retain more data for training, analysis, and compliance, driving a surge in storage demand, particularly in sectors like drones, surveillance, and automotive technology [14]. - The focus on AI investment has shifted towards hardware spending, with expectations that AI inference will dominate beyond 2026 [14]. Group 3: Cooling Stocks Decline - Huang's comments raised concerns about the demand for data center cooling products, leading to declines in cooling-related stocks [15]. - Johnson Controls' stock fell 6.24%, Modine Manufacturing dropped 7.46%, and Trane Technologies decreased by 2.52%, with significant intraday losses [15][19]. - Analysts noted that the shift towards liquid cooling technology could impact traditional cooling systems, although some believe the recent sell-off may be excessive [21].

Market Performance - On January 6, US stock indices rose across the board, with the Dow Jones Industrial Average and S&P 500 both reaching record closing highs [1][2] - The Dow Jones increased by 0.99%, closing at 49,462.08 points, while the S&P 500 and Nasdaq Composite rose by 0.62% and 0.65%, closing at 6,944.82 points and 23,547.17 points respectively [1][2] Sector Performance - In the technology sector, large tech stocks showed mixed performance; Amazon surged over 3%, while Microsoft and Intel both gained over 1% [2][4] - Conversely, Tesla led the decline with a drop of over 4%, and Apple fell by more than 1% [2][4] Storage Sector - The storage sector experienced a significant rally, driven by comments from NVIDIA CEO Jensen Huang at CES 2026 regarding "AI storage transformation" [4][6] - Micron Technology saw an increase of over 10%, while SanDisk surged by more than 27%, and Western Digital and Seagate Technologies recorded gains of over 16% and 14% respectively [4][6] Data Center Cooling Sector - In contrast, the data center cooling sector faced declines, with Johnson Controls dropping over 6% and Trane Technologies falling by more than 2% [6] - The announcement regarding new server rack capabilities that do not require water cooling contributed to this downturn [6] Chinese Stocks - The Nasdaq Golden Dragon China Index fell by 0.78%, closing at 7,836.43 points, with most popular Chinese stocks declining [8][9] - Notable movements included Hesai rising over 10% and Xiaoma Zhixing increasing by more than 5%, while BOSS Zhipin and Tencent Music dropped over 6% and 4% respectively [8]

Core Viewpoint - Nvidia's CEO Jensen Huang's comments on the next-generation Rubin chip's cooling technology have raised concerns among investors regarding the demand for data center cooling equipment, leading to a significant drop in related stocks [2][3][5]. Group 1: Impact on Cooling Equipment Stocks - Nvidia's announcement that servers with the Rubin chip will utilize liquid cooling instead of traditional chillers has caused a sell-off in cooling equipment stocks, with Johnson Controls experiencing an 11% drop, marking its largest intraday decline since 2022 [2][3]. - Modine Manufacturing's stock fell by approximately 21% before recovering to a 7.44% decline, while Trane Technologies also saw a decrease [2][3]. - Analysts are reassessing the investment logic surrounding AI infrastructure, as companies like Johnson Controls saw a 52% cumulative increase in stock price since last year due to the AI boom [5]. Group 2: Analyst Insights - Analyst Timothy Wojs from Baird highlighted that Huang's comments have raised questions about the long-term role of chillers in data centers, especially with the increasing adoption of liquid cooling technology, which allows systems to operate at higher temperatures [6]. - Barclays analyst Julian Mitchell noted that while Vertiv holds a strong position in the liquid cooling sector and may benefit from the discussed technological advancements, its cooling business could face challenges [6]. - Citi analyst Andrew Kaplowitz described the sell-off in cooling stocks as "overdone," emphasizing that cooling system manufacturers have established partnerships with chip makers and data center operators, making the risks manageable [10]. Group 3: Market Reactions - Huang's statements have also spurred a surge in data storage stocks, with SanDisk's stock rising over 27%, becoming the best performer in the S&P 500 on that day, as demand for memory and storage was highlighted [10].

格隆汇1月6日｜由于英伟达首席执行官的言论引发了市场对数据中心冷却产品需求的担忧，制冷系统制 造商的股价周二大幅下跌。制造水冷设备及类似系统的江森自控股价一度暴跌11%，创下2022年以来最 大单日盘中跌幅。摩丁制造一度下跌21%，开利全球和特灵科技也纷纷走低。英伟达首席执行官黄仁勋 在拉斯维加斯举行的CES展会上表示，使用不需要冷水机组的水温，就有可能为搭载英伟达下一代 Rubin芯片的机架进行冷却。巴克莱银行分析师Julian Mitchell写道："鉴于英伟达在整个人工智能生态系 统中的核心地位，人们不应轻视他们的言论，尽管这些言论乍一看相当具有戏剧性。" ...

Core Viewpoint - The cooling stocks for data centers experienced a significant decline following Jensen Huang's comments regarding data center cooling solutions at the CES event, indicating a potential shift in technology that could impact the market dynamics for these companies [1] Group 1: Market Reaction - Data center cooling stocks collectively dropped, with Johnson Controls and Trane Technologies falling by 10% at one point [1] - Modine experienced a decline of up to 20% [1] - Carrier and Vertiv Technologies saw declines exceeding 5% [1] Group 2: Technological Implications - Jensen Huang stated that servers equipped with the new Rubin chip could utilize cooling methods that do not require water, suggesting a significant change in cooling technology [1] - The airflow requirements for the new Rubin chip servers are comparable to those of the existing Blackwell chip servers, indicating a potential for reduced cooling costs and infrastructure changes [1]