Jan 6 (Reuters) – Shares of U.S. heating, ventilation and air conditioning-related companies dropped on Tuesday after Nvidia CEO Jensen Huang \u200bsaid that the company’s upcoming chips could significantly reduce cooling \u200crequirements in data centers.<\/p>\n
Johnson Controls International dropped 7.5% to $112.40 and Trane Technologies lost 5.3% to $370.40. \u200cBoth stocks hit multi-month lows and were among the biggest percentage decliners on the S&P 500.<\/p>\n
Speaking at the Consumer Electronics Show (CES) in Las Vegas on Monday, Huang said Nvidia’s next generation of chips is in “full production.” \u2060The Vera Rubin platform, \u200cmade up of six separate Nvidia chips, is expected to debut later this year.<\/p>\n
When talking about the cooling \u200drequirements, Huang said that “no water chillers are necessary for data centres.”<\/p>\n
Barclays analysts said in a note led by Julian Mitchell that “given the primacy of Nvidia to \u200bthe whole AI ecosystem, one should not take their comments lightly, \u200calthough they seem rather dramatic at first glance.”<\/p>\n
The analysts said the companies that could be most affected include Johnson Controls International, Trane Technologies and Carrier Global.<\/p>\n
They estimate that data centers represent a low-double-digit percentage of total sales for Johnson Controls and data centers account for about 10% \u2060and 5% of sales for Trane Technologies \u200band Carrier Global, respectively.<\/p>\n
Carrier Global shares \u200bfell 1.1%.<\/p>\n
The analysts also highlighted nVent Electric could benefit from these developments as it has “no presence in space cooling\/chillers\/air handling” \u200dbut has a “decent \u2060position in data center liquid cooling.”<\/p>\n
Data center power equipment maker Vertiv Holdings could also benefit due to its “strong historical position in \u2060precision air cooling” and “strong position in liquid cooling,” the analysts said.<\/p>\n
Vertiv shares were down \u200c2.1%, while nVent shares edged 0.5% higher.<\/p>\n
(Reporting by Shashwat Chauhan \u200cin Bengaluru; Editing by Alan Barona)<\/p>\n","protected":false},"excerpt":{"rendered":"Jan 6 (Reuters) – Shares of U.S. heating, ventilation and air conditioning-related companies dropped on Tuesday after Nvidia…\n","protected":false},"author":2,"featured_media":391628,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,7258,189975,128020,4321,189976],"class_list":{"0":"post-391627","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-data-centers","10":"tag-johnson-controls","11":"tag-liquid-cooling","12":"tag-nvidia","13":"tag-trane-technologies"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/391627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=391627"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/391627\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/391628"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=391627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=391627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=391627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}