Wasatch Global Investors highlighted AAON, Inc. (NASDAQ: AAON) as a material contributor in its Small Cap Growth Strategy Q2 2026 investor letter.
The asset management firm’s small-cap strategy experienced strong gains in the second quarter, driven primarily by companies tied to artificial intelligence.
Despite the sector’s momentum, the strategy underperformed against the Russell 2000 Growth Index, which posted a gain of 25.71% for the quarter.
Wasatch attributed the underperformance to its disciplined focus on higher-quality businesses, though several AI-related holdings contributed positively to overall results.
AAON designs and manufactures high-efficiency air conditioning and heating equipment for commercial and industrial environments, making it a direct beneficiary of AI infrastructure spending.
The company’s shares closed at $102.67 on July 24, 2026, reflecting a market capitalization of $8.41 billion, with a 52-week gain of 20.22%.
AAON recorded a one-month return of -19.75%, suggesting recent volatility even as the company’s underlying business fundamentals continue to strengthen considerably.
In its Q2 2026 investor update, Wasatch stated: “Data-center cooling demand amid the AI infrastructure build-out has led to accelerated growth for the company, whose commercial HVAC business had already experienced steady growth before the advent of AI.”
Wasatch further noted that “AI has been a demand accelerant,” with year-over-year net sales growing more than 50% in AAON’s latest quarterly results.
The company’s total backlog surged 107.4% to a record $2.1 billion, underscoring the scale of demand flowing through its order pipeline from data center operators.
AAON’s pre-existing commercial HVAC business provided a stable foundation before AI-driven demand arrived, positioning the company to scale rapidly without building capabilities from scratch.
According to data compiled from hedge fund filings, 30 hedge fund portfolios held AAON at the end of the first quarter of 2026, down from 36 in the previous quarter.
The decline in hedge fund holders contrasts sharply with the company’s record backlog, suggesting some institutional investors may be rotating into other AI-adjacent opportunities.
AAON does not appear on the list of 40 Most Popular Stocks Among Hedge Funds heading into 2026, despite its direct exposure to one of the market’s most powerful spending themes.
The convergence of AI infrastructure investment and AAON’s established commercial HVAC expertise puts the company at the center of a spending cycle that shows few signs of slowing.
