Valeo jumps on AI data centres 'cooling frenzy'
BUZZ-Valeo jumps on AI data centres 'cooling frenzy' ** Shares in Valeo VLOF.PA rise around 4% returning to levels from the previous week, after the auto parts maker reached an agreement with Belgian cooling system producer Calyos regarding AI data centres
** The parties said on Tuesday they had signed a memorandum of understanding (MoU) to develop and industrialize passive two-phase chip cooling systems for mobility and data centres
** ODDO BHF analyst Michael Foundoukidis says the deal marks an "incremental shift" toward AI and chip-direct cooling, however warns that there has been no fundamental breakthroughs yet
** "Shares (move) looks largely communication‑driven, with Valeo leaning into the ongoing AI (and) data centres cooling frenzy already visible last week" Foundoukidis writes in a note
** Last week saw the stock enjoy a three-day rally, culminating on Thursday early trading when it peaked at 17.30 euros ($19.97) per share
** Foundoukidis adds that there is no proof that companies adopt this technology
** "That said, this type of newsflow is likely to keep the stock difficult to short near‑term, with sentiment and optionality continuing to dominate fundamentals", he sums up
** Up to the previous session's close, shares were up 30.8% YTD
($1 = 0.8665 euros)
(Reporting by Mateusz Rabiega)