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

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(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.

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Atlas 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.

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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.  

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“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.”

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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?”

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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. 

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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.”

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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. 

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As for air conditioning equipment maker Belimo Holding AG, its liquid cooling valves are “so critical I can’t overstate it,” Barclays’ Featherstone said.

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The performance of these companies’ AI-exposed businesses is helping offset weaker demand from other end markets, including residential housing, carmaking and industrial manufacturing. 

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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.