Yahoo Finance·2026-01-06 14:24Core Insights - Johnson Controls (JCI) stock experienced a decline due to concerns that Nvidia's new Rubin chip platform could significantly lower cooling requirements in data centers, potentially affecting HVAC companies' future performance [1] - The selloff also impacted other major HVAC players, including Trane Technologies (TT) and Carrier Global (CARR), as investors reacted to Nvidia CEO Jensen Huang's comments at CES 2026 [1] Group 1: Impact of Nvidia's Rubin Chip Platform - Nvidia's Vera Rubin chip platform is expected to have similar cooling needs as the Grace Blackwell chip, despite increased power demands, indicating that "no water chillers are necessary for datacenters" due to advancements in liquid cooling [2] - Barclays analyst Julian Mitchell highlighted that companies focused on space cooling, chillers, and air handling with limited involvement in liquid cooling could be particularly affected [3] Group 2: Company Exposure to Data Center Cooling Changes - Johnson Controls has a low-double-digit percentage of total sales from data centers, making it one of the most exposed HVAC providers to the changes in cooling requirements [3] - Trane Technologies derives approximately 10% of its sales from data centers, while Carrier Global has about 5% exposure, both of which could face challenges from reduced chiller intensity in future data center designs [4] Group 3: Potential Beneficiaries - nVent Electric (NVT) may benefit from these developments as it has no presence in space cooling, chillers, or air handling, but holds a strong position in datacenter liquid cooling [5] - Vertiv Holdings (VRT) is also positioned to benefit due to its strong historical presence in precision air cooling and a solid position in liquid cooling [5]