Told you. $VRT $MOD
Heat is a HUGE new constraint. Cooling TAM going $25B → $63B by 2030 (~25% CAGR, faster than the capacity build itself).
Liquid cooling penetration on new capacity 70% → 85%. CDUs + cold plates are the high-growth pieces.
$VRT just confirmed it in the most violent way possible:
• Revenue $4.31B (+61% YoY, 55% organic), crushed ~$3.75B est.
• Adj EPS $2.21 vs $1.82 est (+21% beat, +78% YoY).
• Organic orders >100% YoY.
• Adj Op. Margin 25.2% (+290 bps).
• Raised full-year 2026 guide again.
• Customers already prepaid $4.1B.
Premarket ripping +18% to ~$246. This is the AI power & cooling bottleneck printing in real time.
$VRT and $MOD sit right in the middle of the highest-intensity part of the stack.
We flagged the setup weeks ago.
Still long $MOD (the most asymmetric one). Heat is not optional.
NFA.
$MOD $VRT
Bernstein: US data center cooling TAM goes from ~$25B (2026E) to ~$63B (2030E) — ~25% CAGR.
That’s faster than the capacity build itself. Liquid cooling penetration on new capacity rises from ~70% to ~85%.
CDUs and cold plates are the high-growth pieces
Heat is the new constraint.
We are long $MOD. NFA.