liquid cooling and data-center water needs unlock AI-adjacent growth after a ~30% drop.
XYL offers long-term upside as liquid-cooling and data-center water requirements expand, even after a ~30% selloff on order-timing concerns.
XYL directly benefits from the AI infrastructure shift toward liquid cooling, requiring high-efficiency pumps, filtration, heat exchangers, and measurement systems. Data centers also require massive water volumes and are pressured to become water positive, and XYL is positioned with closed-loop recycling work and applied-water growth; the recent ~30% decline is treated as an overblown reaction.