Micron is mentioned as a company that could benefit from water management becoming a bottleneck, though not to the same degree as memory.
Source Post
The Bottleneck Opportunity in Data Centers? Water.
Aug 30, 2026
The creator discusses the AI bubble and data center infrastructure, highlighting chip designers and physical infrastructure providers. They propose that water infrastructure is the next major opportunity, driven by the cooling needs of data centers. The creator outlines both the bear and bull cases for water infrastructure stocks, emphasizing the essential nature of water and the growing demand from data center expansion.
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Tickers discussed in this post
SAP is mentioned as a beneficiary of the software selloff, with the creator expressing happiness about benefiting from investments in Amazon, Microsoft, and SAP.
Microsoft is mentioned as a beneficiary of the software selloff, with the creator expressing happiness about benefiting from investments in Amazon, Microsoft, and SAP.
Amazon is mentioned as a beneficiary of the software selloff, with the creator expressing happiness about benefiting from investments in Amazon, Microsoft, and SAP.
Roper Technologies (RO) is mentioned as a water infrastructure player, but its primary business serves local governments, making its benefit from data center buildout indirect and limited, leading the creator to prefer other options.
Itron, trading at a 15 forward PE in a bullish industry, appears undervalued on the surface but has significant red flags in its financials, including inconsistent sales and negative profits per share.
Mueller is a company to watch closely, with a mixed outlook due to lowered guidance but potential tailwinds from data centers.
Mueller Water Products is a compelling infrastructure play with a low valuation (16x forward EPS), trading near its one-year low, and showing strong EPS growth and a healthy balance sheet.
Badger Meter is crucial for data centers needing precise water measurement due to regulatory hurdles, but the company is currently facing cyclical headwinds with declining gross sales and a valuation that suggests it's not cheap.
Watts Water Technologies (WTS) is mentioned for its role in plumbing and water flow control, providing high-end valves and backflow preventers.
