Nvidia had a chilling effect on these power stocks. Are investors being too harsh?

CEO Jensen Huang says Nvidia’s upcoming chip platform won’t need water chillers. That’s good news for energy efficiency, but potentially bad news for a crop of power and utility companies that had once been seen as bets on the steep energy requirements of the artificial-intelligence boom.

As a result of Huang’s commentary, shares of Johnson Controls

JCI and Modine Manufacturing MOD have fallen sharply since Monday, while shares of Trane Technologies TT and Carrier Global CARR have seen lesser drops.