Investing.com -- Shares of Swedish cooling solutions company Munters surged more than 7% on Wednesday following the announcement of the $500 billion Stargate AI infrastructure project.
The initiative, led by OpenAI, SoftBank (TYO:9984), and Oracle (NYSE:ORCL), aims to develop extensive data centers across the United States to bolster the country’s AI capabilities.
In a note to clients, Jefferies analysts explained that Munters is a key beneficiary of this development, stating, “Among our Nordic SMID coverage, Munters stands out as best positioned to benefit from this development.”
The company’s strong presence in the U.S. market, which accounts for approximately 90% of its sales in the Data Center Technologies segment, is said to put it at the forefront of this transformative opportunity.
Jefferies says the Stargate project’s emphasis on energy-efficient and innovative cooling technologies to manage the immense heat generated by high-performance servers aligns perfectly with Munters' strategic investments in liquid cooling solutions.
“Munters has also increased its investments in liquid cooling solutions over the past few years, presenting a substantial opportunity for the company to supply cutting-edge cooling systems tailored to the needs of next-generation data centers,” Jefferies noted.
The firm's optimism is supported by a recent fireside chat with Munters executives Stefan Aspman and Craig MacFadyen.
The discussion is said to have reinforced confidence in Munters’ innovative capabilities and customer-focused approach. Jefferies praised the company’s ability to navigate the competitive landscape, concluding that Munters is well-positioned to drive growth in this rapidly evolving sector.
As the Stargate project takes shape, Jefferies believes Munters’ strategic positioning in the U.S. and its advanced cooling technologies could make it a standout player in the data center market.