Core Viewpoint - Nvidia's CEO Jensen Huang's comments on the next-generation Rubin chip's cooling technology have raised concerns among investors regarding the demand for data center cooling equipment, leading to a significant drop in related stocks [2][3][5]. Group 1: Impact on Cooling Equipment Stocks - Nvidia's announcement that servers with the Rubin chip will utilize liquid cooling instead of traditional chillers has caused a sell-off in cooling equipment stocks, with Johnson Controls experiencing an 11% drop, marking its largest intraday decline since 2022 [2][3]. - Modine Manufacturing's stock fell by approximately 21% before recovering to a 7.44% decline, while Trane Technologies also saw a decrease [2][3]. - Analysts are reassessing the investment logic surrounding AI infrastructure, as companies like Johnson Controls saw a 52% cumulative increase in stock price since last year due to the AI boom [5]. Group 2: Analyst Insights - Analyst Timothy Wojs from Baird highlighted that Huang's comments have raised questions about the long-term role of chillers in data centers, especially with the increasing adoption of liquid cooling technology, which allows systems to operate at higher temperatures [6]. - Barclays analyst Julian Mitchell noted that while Vertiv holds a strong position in the liquid cooling sector and may benefit from the discussed technological advancements, its cooling business could face challenges [6]. - Citi analyst Andrew Kaplowitz described the sell-off in cooling stocks as "overdone," emphasizing that cooling system manufacturers have established partnerships with chip makers and data center operators, making the risks manageable [10]. Group 3: Market Reactions - Huang's statements have also spurred a surge in data storage stocks, with SanDisk's stock rising over 27%, becoming the best performer in the S&P 500 on that day, as demand for memory and storage was highlighted [10].

Core Viewpoint - The cooling systems manufacturers experienced significant stock declines following comments from Nvidia's CEO regarding reduced demand for their products in data centers [1][2]. Group 1: Stock Performance - Johnson Controls International Plc (JCI) saw its shares drop as much as 11%, marking the worst intraday decline since 2022 [1]. - Modine Manufacturing Co. (MOD) experienced a more severe decline, with shares falling as much as 21% [1]. - Carrier Global Corp. (CARR) and Trane Technologies Plc (TT) also faced stock price reductions, although specific percentages were not provided [1]. Group 2: Nvidia's Comments - Nvidia's CEO Jensen Huang indicated that their next-generation Rubin chips could cool racks using water at temperatures that do not necessitate a water chiller [2]. - Barclays analyst Julian Mitchell emphasized the importance of Nvidia's comments, suggesting that they should not be dismissed lightly due to Nvidia's central role in the AI ecosystem [2].

Group 1 - Nvidia CEO Jensen Huang's comments at CES regarding next-generation chip cooling technology have raised concerns among investors about the demand for data center cooling equipment, leading to a significant drop in related stocks [1][2] - Huang stated that servers equipped with the next-generation Nvidia Rubin chip will support liquid cooling, eliminating the need for traditional chillers, which are core equipment provided by companies like Trane and Johnson Controls [2] - On the day of the announcement, stocks of data center cooling equipment companies fell sharply, with Johnson Controls experiencing an 11% intraday drop, the largest since 2022, and Modine Manufacturing initially dropping around 21% before recovering to a 7.44% decline [2] Group 2 - The sell-off reflects a reassessment by investors of the investment logic in AI infrastructure, as these companies saw significant stock price increases due to the AI boom, with Johnson Controls rising 52% cumulatively by 2025 [4] - Analyst Timothy Wojs from Baird noted that Huang's comments raised questions about the long-term positioning of chillers in data centers, especially with the increasing prevalence of liquid cooling technology, which allows systems to operate at higher temperatures [5] - Barclays analyst Julian Mitchell mentioned that while Vertiv has a strong position in the liquid cooling sector and may benefit from the discussed technological developments, its cooling business could be negatively impacted [5] Group 3 - Citigroup analyst Andrew Kaplowitz described the investor flight from cooling stocks as "overdone," emphasizing that cooling system manufacturers have established partnerships with chip manufacturers and data center operators, making the risks of falling behind manageable [8] - Kaplowitz acknowledged that Huang's comments highlight the rapid evolution of data center thermal management technology but stated that it was not unexpected for their companies [9] - Huang's remarks also spurred a surge in data storage stocks, with SanDisk's stock rising over 27%, becoming the best performer in the S&P 500 on that day, as he emphasized the demand for memory and storage [9]

Core Viewpoint - Shares of cooling system manufacturers for data centers experienced significant declines following comments from Nvidia CEO Jensen Huang regarding the potential reduced need for traditional water chillers due to the capabilities of Nvidia's next-generation Rubin chips [1][10]. Group 1: Stock Performance - Trane Technologies Plc's stock fell as much as 11%, marking its steepest intraday drop since 2020 [1][12]. - Modine Manufacturing Co's stock dropped by 21% [1][12]. - Johnson Controls International Plc and Carrier Global Corp also saw notable declines amid the selloff [1][12]. Group 2: Technological Implications - Huang indicated that Nvidia's Rubin chips can be cooled using water at higher temperatures, potentially eliminating the need for traditional water chillers [2][10]. - Bloomberg Intelligence highlighted that chillers are a "predominant" component of data-center cooling equipment [2]. Group 3: Market Reactions and Analyst Insights - Analyst Timothy Wojs from Robert W. Baird expressed concerns about the long-term positioning of chillers in data centers as liquid cooling becomes more prevalent [3][4]. - Wojs does not foresee major risks to near-term estimates for cooling-system makers but anticipates potential order concerns later in 2026 [6]. - Citi analyst Andrew Kaplowitz described the stock decline as "overdone," emphasizing the established relationships between cooling-system manufacturers and chipmakers [8][13]. - Barclays analyst Julian Mitchell noted that Vertiv, which has a strong position in liquid cooling, may benefit from the changes discussed by Huang, despite potential headwinds for its chiller business [9][13].

Core Viewpoint - Concerns over the demand for data center cooling products have been raised following comments from NVIDIA's CEO, leading to significant stock declines for cooling system manufacturers [1] Group 1: Stock Performance - Johnson Controls, a manufacturer of water cooling equipment, saw its stock drop by 11%, marking the largest intraday decline since 2022 [1] - Modine experienced a stock decrease of 21% [1] - Other companies such as Carrier Global and Trane Technologies also faced declines in their stock prices [1] Group 2: Industry Impact - NVIDIA's CEO Jensen Huang suggested that cooling for racks equipped with the next-generation Rubin chip could be achieved without traditional chiller units [1] - Barclays analyst Julian Mitchell emphasized the importance of NVIDIA's statements due to the company's central role in the AI ecosystem, indicating that their comments should not be underestimated [1]

Core Viewpoint - The cooling stocks for data centers experienced a significant decline following Jensen Huang's comments regarding data center cooling solutions at the CES event, indicating a potential shift in technology that could impact the market dynamics for these companies [1] Group 1: Market Reaction - Data center cooling stocks collectively dropped, with Johnson Controls and Trane Technologies falling by 10% at one point [1] - Modine experienced a decline of up to 20% [1] - Carrier and Vertiv Technologies saw declines exceeding 5% [1] Group 2: Technological Implications - Jensen Huang stated that servers equipped with the new Rubin chip could utilize cooling methods that do not require water, suggesting a significant change in cooling technology [1] - The airflow requirements for the new Rubin chip servers are comparable to those of the existing Blackwell chip servers, indicating a potential for reduced cooling costs and infrastructure changes [1]

Core Viewpoint - Data center cooling stocks experienced a significant decline, with major companies like Modin Manufacturing, Johnson Controls, Trane Technologies, and Vertiv Technologies facing substantial drops in their stock prices following comments made by Jensen Huang at the CES event regarding new cooling technologies [1] Group 1: Stock Performance - Modin Manufacturing (MOD.US) saw a drop of over 13% [1] - Johnson Controls (JCI.US) and Trane Technologies (TT.US) both fell by more than 7% [1] - Vertiv Technologies (VRT.US) experienced a decline of over 3% [1] Group 2: Technological Developments - Jensen Huang announced that servers equipped with the new Rubin chip will be able to operate without water cooling, requiring airflow comparable to that of racks using the Blackwell chip [1]

Group 1 - The core viewpoint of the article highlights a significant decline in the stock prices of data center cooling concept stocks, with notable drops in companies such as Trane Technologies (TT), Carrier Global (CARR), Johnson Controls (JCI), Modine Manufacturing (MOD), and Vertiv Holdings (VRT) [1] Group 2 - Trane Technologies (TT) experienced a drop of over 10% in early trading [1] - Carrier Global (CARR) saw a decline of approximately 6.6% [1] - Johnson Controls (JCI) fell by 10.8% [1] - Modine Manufacturing (MOD) reported a decrease of 13.5% [1] - Vertiv Holdings (VRT) declined by 6% [1] - Investors are paying close attention to the latest remarks from NVIDIA CEO Jensen Huang [1]

Group 1 - Data center cooling stocks experienced a significant decline on January 6, with major companies like Johnson Controls and Trane Technologies dropping by 10% at one point [1] - Modine Industries saw a more severe decline, with its stock falling by 20% during the trading session [1] - Carrier and Vertiv Technologies also faced losses, with both companies' stocks decreasing by over 5% [1]

Core Insights - Johnson Controls (JCI) stock experienced a decline due to concerns that Nvidia's new Rubin chip platform could significantly lower cooling requirements in data centers, potentially affecting HVAC companies' future performance [1] - The selloff also impacted other major HVAC players, including Trane Technologies (TT) and Carrier Global (CARR), as investors reacted to Nvidia CEO Jensen Huang's comments at CES 2026 [1] Group 1: Impact of Nvidia's Rubin Chip Platform - Nvidia's Vera Rubin chip platform is expected to have similar cooling needs as the Grace Blackwell chip, despite increased power demands, indicating that "no water chillers are necessary for datacenters" due to advancements in liquid cooling [2] - Barclays analyst Julian Mitchell highlighted that companies focused on space cooling, chillers, and air handling with limited involvement in liquid cooling could be particularly affected [3] Group 2: Company Exposure to Data Center Cooling Changes - Johnson Controls has a low-double-digit percentage of total sales from data centers, making it one of the most exposed HVAC providers to the changes in cooling requirements [3] - Trane Technologies derives approximately 10% of its sales from data centers, while Carrier Global has about 5% exposure, both of which could face challenges from reduced chiller intensity in future data center designs [4] Group 3: Potential Beneficiaries - nVent Electric (NVT) may benefit from these developments as it has no presence in space cooling, chillers, or air handling, but holds a strong position in datacenter liquid cooling [5] - Vertiv Holdings (VRT) is also positioned to benefit due to its strong historical presence in precision air cooling and a solid position in liquid cooling [5]