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

Jan 6 (Reuters) - Shares of U.S. heating, ventilation and aerial conditioning-related companies dropped connected Tuesday aft Nvidia CEO Jensen Huang ​said that the company's upcoming chips could importantly trim cooling ‌requirements successful information centers.

Johnson Controls International dropped 7.5% to $112.40 and Trane Technologies mislaid 5.3% to $370.40. ‌Both stocks deed multi-month lows and were among the biggest percent decliners connected the S&P 500.

Speaking astatine the Consumer Electronics Show (CES) successful Las Vegas connected Monday, Huang said Nvidia's adjacent procreation of chips is successful "full production." ⁠The Vera Rubin platform, ‌made up of six abstracted Nvidia chips, is expected to debut aboriginal this year.

When talking astir the cooling ‍requirements, Huang said that "no h2o chillers are indispensable for information centres."

Barclays analysts said successful a enactment led by Julian Mitchell that "given the primacy of Nvidia to ​the full AI ecosystem, 1 should not instrumentality their comments lightly, ‌although they look alternatively melodramatic astatine archetypal glance."

The analysts said the companies that could beryllium astir affected see Johnson Controls International, Trane Technologies and Carrier Global.

They estimation that information centers correspond a low-double-digit percent of full income for Johnson Controls and information centers relationship for astir 10% ⁠and 5% of income for Trane Technologies ​and Carrier Global, respectively.

Carrier Global shares ​fell 1.1%.

The analysts besides highlighted nVent Electric could payment from these developments arsenic it has "no beingness successful abstraction cooling/chillers/air handling" ‍but has a "decent ⁠position successful information halfway liquid cooling."

Data halfway powerfulness instrumentality shaper Vertiv Holdings could besides payment owed to its "strong humanities presumption successful ⁠precision aerial cooling" and "strong presumption successful liquid cooling," the analysts said.

Vertiv shares were down ‌2.1%, portion nVent shares edged 0.5% higher.

(Reporting by Shashwat Chauhan ‌in Bengaluru; Editing by Alan Barona)