Data center cooling-related stocks drop after Nvidia CEO Huang’s comments

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Data center cooling-related stocks drop after Nvidia CEO Huang’s comments

By Reuters
Publication Date: 2026-01-06 17:27:00

Jan 6 (Reuters) – Shares of U.S. heating, ventilation and air conditioning-related companies dropped on Tuesday after Nvidia CEO Jensen Huang said that the company’s upcoming chips could significantly reduce cooling requirements in data centers.

Johnson Controls International (JCI.N), opens new tab dropped 7.5% to $112.40 and Trane Technologies lost 5.3% to $370.40. Both stocks hit multi-month lows and were among the biggest percentage decliners on the S&P 500 (.SPX), opens new tab.

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Speaking at the Consumer Electronics Show (CES) in Las Vegas on Monday, Huang said Nvidia’s next generation of chips is in “full production.” The Vera Rubin platform, made up of six separate Nvidia chips, is expected to debut later this year.

When talking about the cooling requirements, Huang said that “no water chillers are necessary for data centres.”

Barclays analysts said in a note led by Julian Mitchell that “given the primacy of Nvidia to the whole AI ecosystem, one should not take their comments lightly, although they seem rather dramatic at first glance.”

The analysts said the companies that could be most affected include Johnson Controls International (JCI.N), opens new tab, Trane Technologies and Carrier Global (CARR.N), opens new tab.

They estimate that data centers represent a low-double-digit percentage of total sales for Johnson Controls and data centers account for about 10% and 5% of sales for Trane Technologies and Carrier Global, respectively.

Carrier Global shares…

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