Nvidia’s new AI infrastructure could boost demand for Johnson Controls’ products, despite data centers not being its core business. Nvidia CEO’s comments at CES caused Johnson Controls stock to drop by 10% as the market reacted. This new warm-water cooling system could impact companies that provide traditional cooling solutions for data centers.

Nvidia’s next-gen AI infrastructure, Vera Rubin, will use warm-water cooling, a more energy-efficient alternative to traditional air cooling. This shift could impact companies like Johnson Controls and Trane, who provide cooling solutions for data centers. Data center-related revenue is a significant growth driver for Johnson Controls, leading to a sell-off in its stock.

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Read more at Yahoo Finance: Here’s Why Shares in Johnson Controls Slumped Today (Hint: It’s Nvidia Related)