New York, January 11, 2026, 21:46 EST — Market closed
Modine Manufacturing Co shares closed Friday at $125.14, up 4.3% ahead of Monday’s U.S. session. The stock fluctuated between $119.31 and $127.71 during the day, rebounding from an earlier dip this week to an intraday low of $111.18. (Investing)
The rebound comes as investors debate whether new AI chips will shift how data centers handle cooling. “Chips will continue to get more efficient but also more powerful, leading to total cooling needs growing,” Matthew Sallee from Tortoise Capital told MarketWatch. He noted that Modine trades at roughly 11.5 times next year’s Ebitda — earnings before interest, taxes, depreciation, and amortization. (MarketWatch)
The conversation kicked off at CES in Las Vegas last week, when Nvidia CEO Jensen Huang claimed “no water chillers are necessary for data centres” while outlining cooling requirements for the company’s upcoming chip platform. Barclays analysts, led by Julian Mitchell, warned these remarks carry weight given Nvidia’s AI influence, highlighting Johnson Controls, Trane, and Carrier as the firms most at risk. (Reuters)
Modine, headquartered in Racine, Wisconsin, offers thermal management products through its Climate Solutions and Performance Technologies divisions. The Climate Solutions segment focuses on cooling systems for data centers that reduce water and energy use via smart controls, according to a Reuters company profile. (Reuters)
Despite the recent volatility, analysts remain broadly optimistic. Six brokerages currently assign Modine a “Moderate Buy” rating, setting a 12-month average price target of $182, according to MarketBeat. (MarketBeat)
Modine upped its fiscal 2026 sales growth forecast to 15%-20% in its latest quarterly update from late October, projecting adjusted EBITDA between $440 million and $470 million. CEO Neil Brinker pointed to expanding manufacturing capacity driven by “accelerating demand for data center solutions,” but warned the scale-up could cause “temporary operating inefficiencies.” (Modine)
On Monday, all eyes will be on whether Modine follows Nvidia and other AI-focused stocks or charts its own path. The key issue centers on its product mix: while warm-water and direct-to-chip liquid cooling still need heat exchangers, pumps, and controls, they might cut into demand for certain chilled-water gear.
There’s a risk, though. Should chipmakers and major clients shift away from chilled-water systems quicker than anticipated, orders linked to conventional chiller demand might weaken. Suppliers could end up stuck with capacity designed for a past cycle.
The stock has turned into a quick barometer for the entire AI infrastructure—not just the chips. That volatility works both ways, particularly when a single remark from a leading supplier can shift the outlook in a matter of hours.
MarketScreener has Modine slated for a CJS Securities “New Ideas for the New Year” conference on Jan. 13, with a projected earnings release set for Feb. 3. These two dates stand out as key markers investors will watch to gauge if demand from data centers remains steady. (MarketScreener)
