Shares of U.S. HVAC companies dropped after Nvidia CEO Jensen Huang announced upcoming chips could reduce data center cooling needs. Johnson Controls fell 7.5% and Trane Technologies lost 5.3%. Analysts believe companies like Johnson Controls, Trane Technologies, and Carrier Global could be most affected by these changes.

Huang revealed at CES that Nvidia’s next-gen chips are in full production. The Vera Rubin platform, made up of six Nvidia chips, is set to debut later this year. Barclays analysts warn not to take Nvidia’s comments lightly, as they could have a significant impact on the AI ecosystem.

Data centers account for a low-double-digit percentage of total sales for Johnson Controls, and 10% and 5% of sales for Trane Technologies and Carrier Global, respectively. Carrier Global shares fell 1.1%. Analysts suggest nVent Electric and Vertiv Holdings could benefit from these developments due to their positions in data center liquid cooling.

Vertiv Holdings, with a strong historical position in precision air cooling, could benefit from the changes. Meanwhile, nVent Electric has no presence in space cooling but a decent position in data center liquid cooling. Vertiv shares were down 2.1%, while nVent shares edged 0.5% higher.

Read more at Yahoo Finance: Data center cooling-related stocks drop after Nvidia CEO Huang’s comments