The AI buildout’s real bottleneck is the steel, copper, and chilled water surrounding the GPUs. The stock at the center of that story just pulled back, and Investor’s Business Daily flagged the chart as a textbook setup. Comfort Systems USA (NYSE:FIX | FIX Price Prediction) Comfort Systems carries a composite rating of 97, an EPS rating of 99, and an RS rating of 95, yet sits roughly 10% off its highs after staging an upside reversal on the weekly chart. Five names below sit directly in the line of fire of the AI cooling capex wave. If the cooling capex wave plays out, these are the names positioned to capture it.
1. Comfort Systems USA: The HVAC Contractor Hiding an AI Backlog
Most investors hear “mechanical contractor” and tune out. They shouldn’t. Comfort Systems USA is the team that physically builds the cooling guts of hyperscale data centers, and data center and technology infrastructure now accounts for roughly 45% of company revenue. The host on Stock Market Today With IBD put it bluntly: “I am looking at getting into this one myself. So maybe tomorrow, we’ll see.” Both IBD’s Swing Trader and Leaderboard already hold the name.
The Q1 FY2026 earnings report is the engine behind the setup. EPS landed at $10.51 versus $6.81 consensus, a 54% beat, marking four consecutive quarters of consensus beats. Organic revenue growth hit 51% year-over-year, and backlog swelled to $12.45 billion, nearly double the $6.89 billion from a year earlier. The chart pause is what IBD loves: “This was a nice little flat area letting that moving average line really kind of catch up to it.”
The kicker: this is the contractor. The equipment going into those buildings is sourced from a separate set of suppliers, and the order books at those vendors tell an even louder story.
2. Eaton: The Power Half of the Equation Caught a Cooling Tailwind
Eaton (NYSE:ETN) has long been the electrical backbone story. The new wrinkle: in Q1 FY2026 the company closed $11 billion in acquisitions, including $9.55 billion for Boyd Thermal, a direct bet that thermal management is the next leg of data center spend. Reddit caught the angle before the sell side did. A wallstreetbets thread titled “Eaton (ETN) – The unseen datacenter power infrastructure play the market is too regarded to appreciate” drove the ticker’s sentiment score to 82, very bullish.
The fundamentals back it. Electrical Americas orders rose 42% organically on a 12-month rolling basis, driven by data center demand. Total Electrical backlog expanded 48%, and management raised FY2026 adjusted EPS guidance to $13.05 to $13.50. Shares are up 23% year to date but down about 4% over the past month, putting the multiple back inside reach.
Eaton is the diversified giant. The next name is the pure-play that institutions added to the S&P 500 this spring, and it just gave investors a window to buy it on sale.
3. Vertiv Holdings: The S&P 500 Add With a $15 Billion Order Book
If there is an obvious heavyweight in AI cooling, it’s Vertiv Holdings (NYSE:VRT). The company designs the precision power and liquid cooling systems that hyperscalers order by the rack. It joined the S&P 500 in March 2026, and the order book has gone vertical: Q4 FY2025 organic orders surged 252% year-over-year, the strongest order quarter in company history, lifting backlog to $15.0 billion with a book-to-bill around 2.9x.
Q1 FY2026 carried the momentum forward. Adjusted EPS hit $1.17 versus $1.01 consensus, Americas organic revenue jumped 53%, and free cash flow surged to $652.8 million, up 147%. Management responded by raising FY2026 guidance to $13.5 billion to $14.0 billion in net sales with adjusted EPS of $6.30 to $6.40. CEO Giordano Albertazzi told investors: “data center infrastructure requirements evolve significantly… customers prioritizing optimized design, deployment speed, and operational efficiency… positioned to be the partner customers need.”
Here’s the entry: shares are down 18% over the past month despite being up 87% year to date. Reddit chatter spiked accordingly, with the highest activity score in the dataset on June 5 alongside a bullish 68 sentiment reading.
4. nVent Electric: The Quiet Backlog Story
nVent Electric (NYSE:NVT) does not get the billboards, but it sells the racks, enclosures, and connection systems that physically host AI servers. CEO Beth Wozniak framed Q1 directly: “tremendous start to the year with record sales and orders, and our backlog increased to $2.6 billion… growth across all verticals, with infrastructure leading, driven by broad-based data center growth in both the gray and white space.”
The numbers explain why management felt confident enough to lift the bar twice. Q1 revenue rose 54% year-over-year to $1.24 billion, a 12% beat. Systems Protection sales jumped 76% reported and 50% organic. Full-year guidance was raised to reported sales growth of 26-28% and adjusted EPS of $4.45 to $4.55, up from a prior range of $4.00 to $4.15.
nVent does the picks and shovels. The next name signs the picks-and-shovels supply contracts directly with the hyperscalers themselves, and the dollar figure on its newest deal will make you sit up.
5. Modine Manufacturing: The $4 Billion Hyperscale Punchline
I have been studying the data center thermal stack for the better part of two years, and Modine Manufacturing (NYSE:MOD) is the cleanest expression of the trade I have found. CEO Neil Brinker spelled it out: “landmark $4 billion long-term agreement for chiller sales with a major hyperscale customer, cementing Modine’s position as a critical partner for data center cooling.” That contract runs 2027 through 2029. On top of it, the company is spinning off Performance Technologies via a Reverse Morris Trust with Gentherm, leaving Modine a pure-play climate and data center thermal business by year-end 2026.
The Q4 FY2026 results already show the inflection. Data Center sales rose 158% year-over-year and crossed $400 million in quarterly revenue. Management raised the multi-year data center growth outlook to 50-70% annually, ahead of the prior $2 billion FY28 revenue target. FY2027 guidance now calls for net sales growth of 20-35% and adjusted EBITDA of $650 million to $680 million.
The setup is constructive on the chart. Shares are up 105% year to date but down 2% over the past month, holding above the 50-day moving average. Eight analysts cover the name with seven Buy ratings and one Strong Buy, and a $340.86 average price target against a current price near $274.
The Setup
AI workloads are forcing a generational rebuild of data center cooling and power, and these five companies are the contractors, equipment makers, and pure-plays writing the checks back to themselves in the form of backlog. Comfort Systems gave you the IBD-grade chart pause. Modine handed you a $4 billion hyperscale contract on a platter. Both setups exist right now. Whether they persist at these prices is the question worth tracking.
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