Jun. 30 at 8:45 PM
Regal Rexnord shares surged 8.5% on Tuesday after Kerrisdale Capital disclosed a long position and argued the industrial manufacturer is an overlooked beneficiary of the physical AI revolution, with potential for the stock to more than double from current levels. The investment firm said Regal Rexnord is well positioned to benefit from rising demand for industrial automation, humanoid robotics, and power infrastructure for AI data centers.
Kerrisdale highlighted the company's transformation through its
$3.7 billion acquisition of Rexnord's Process & Motion Control business in 2021 and the
$5.1 billion purchase of Altra Industrial Motion in 2023, shifting its portfolio toward higher-margin motion control markets. The firm also noted Regal Rexnord's entry into the data center power equipment market in early 2025, which generated
$735 million in orders by the fourth quarter.
$RRX