Vacuum Pump Makers, Producers of Gases Are the New AI Winners

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessVacuum Pump Makers, Producers of Gases Are the New AI WinnersEuropean makers of vacuum pumps, heat exchangers and specialty gases are cementing their spot as lesser-known winners of the artificial-intelligence boom, creating new opportunities for investors wary of more established AI stocks.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.ox](3qnc0(oyswo10og5s1m2_media_dl_1.png Bloomberg(Bloomberg) — European makers of vacuum pumps, heat exchangers and specialty gases are cementing their spot as lesser-known winners of the artificial-intelligence boom, creating new opportunities for investors wary of more established AI stocks.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAtlas Copco AB’s vacuum technique segment, which makes pumps and exhaust management systems for chipmakers, saw sales decline last year. They’re set to jump 19% this year, outpacing all other divisions.The same goes for fellow Swedish industrial firm Alfa Laval AB, with its energy unit – which supplies liquid cooling systems and heat exchangers for data centers – set to be the primary growth driver in 2026. Air Liquide SA’s electronics segment, a provider of industrial gases for semiconductor manufacturing, is expected to be this year’s standout performer. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Having had the pullback in AI stocks globally over the last couple of months, investors are wanting to get back in because they see the power of the underlying demand,” Barclays analyst George Featherstone said in an interview. “But they are looking for different opportunities than the easy, low-hanging fruit.”Among such easy pickings are the chipmakers and electrical equipment manufacturers that have been most often associated with the AI trade, said Featherstone. “What investors are looking at here is, where are the strongest pockets of growth in the next layer down?”While a broad range of industrial and chemical companies are benefiting indirectly from the AI rush – like paint maker Sherwin-Williams Co. which makes fire-resistant coatings and resinous floorings for server farms – some firms are involved directly and more deeply in the chipmaking process. That creates an increasingly profitable end market. Wacker Chemie AG is the biggest producer globally of semiconductor grade polysilicon, and an estimated 40% of Air Liquide’s backlog is in the AI-exposed electronics division, according to Berenberg analyst Sebastian Bray. “For most companies, it’s a nice-to-have tailwind. For a few, it’s more significant.”The advent of new-generation data center architecture also has investors “getting more granular and looking specifically for liquid cooling exposure,” according to Goldman Sachs analyst Daniela Costa, who sees this as a boost to Alfa Laval. As for air conditioning equipment maker Belimo Holding AG, its liquid cooling valves are “so critical I can’t overstate it,” Barclays’ Featherstone said.The performance of these companies’ AI-exposed businesses is helping offset weaker demand from other end markets, including residential housing, carmaking and industrial manufacturing. Increasingly, companies are investing in those new pockets of growth as they await for a stronger rebound elsewhere. Air Liquide has invested more than $170 million to supply SK Hynix Inc.’s semiconductor facility in Indiana, while Johnson Matthey Plc in May bought Comertech Inc. to answer growing power-generation demand from US data centers.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.“Chemicals firms as a whole have been confronted for some time with an environment where demand is weak, so they’re naturally inclined to put money towards exciting growth areas like data centers,” Berenberg’s Bray said.Avoiding AI ConcentrationWhile elevated spending looks set to continue over the medium term, the investment cycle may slow and plateau beyond that. The fact that some industrial and chemical companies are not fully AI-focused could help investors avoid too much concentration, Goldman’s Costa said.With Atlas Copco, for instance, investors can get exposure to a broad set of industrial end markets, some of which are currently at the trough stage of the cycle and eyeing a recovery, as well as “second derivative exposure of AI capex,” according to Barclays’ Featherstone.“People are starting to position for a different set of circumstances this time around,” he added. Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.