Jan. 6 at 3:41 PM
PickAlpha Mid-Day:
Data-center cooling stocks sold off Tuesday after Nvidia’s Jensen Huang said next-gen Rubin racks can be cooled with water temps that may not require a water chiller (reported). Johnson Controls fell as much as -11%, Modine -21%, with Carrier and Trane also lower.
Tickers:
$JCI $MOD $NVDA
Our view is this is a capex mix shift, not “AI demand is dead” — the variable is chiller intensity per MW in next-gen builds. If this holds in real deployments, chiller-heavy suppliers de-rate and spend rotates toward liquid-cooling loops, pumps, and heat-exchange plumbing. If it’s overstated / only applies to select configs, today’s drawdown is an overreaction and the trade is to buy the highest-quality names into panic.
