BUZZ-Data center-related cooling stocks drop after Nvidia CEO hints at chiller-free future
TRANE TECHNOLOGIES PLC TT | 427.07 | -0.25% |
Johnson Controls International plc JCI | 132.97 | -1.30% |
NVIDIA Corporation NVDA | 177.39 | +0.93% |
Comfort Systems USA, Inc. FIX | 1417.19 | -0.79% |
VERTIV HOLDINGS LLC VRT | 261.29 | +0.74% |
** Shares of U.S. heating, ventilation and air conditioning-related companies drop after Nvidia NVDA.O CEO Jensen Huang's comments raise concerns about future demand from data centers
** Johnson Controls International JCI.N plunges 8%, Comfort Systems FIX.N down 2.5% and Trane Technologies TT.N falls 4.7%
** Huang, at CES trade show in Las Vegas, says next-gen Rubin chips can significantly reduce cooling requirements in data centers
** Adds that "no water chillers are necessary for data centres"
** NVDA to debut Vera Rubin platform later this year, comprising six separate chips
** Chillers are "predominant" pieces of equipment for data centers; investors had piled into cooling stocks last year during AI rally
** Shares of Vertiv Holdings VRT.N, which makes both cooling systems and power equipment, fell as much as 2%
(Reporting by Tharuniyaa Lakshmi in Bengaluru)
((tharuniyaa@thomsonreuters.com))