The words of Nvidia CEO Jensen Huang matter, and the implications of what he said at the CES 2026 trade show had an impact on stocks like Johnson Controls (JCI +0.26%). The heating, ventilation, and air conditioning (HVAC) company's stock was down by as much as 10% in early morning trading as the market digested Huang's comments.
Jensen Huang's presentation
When discussing Nvidia's next-generation of AI infrastructure, called Vera Rubin, Huang noted that the new systems would use warm water cooling.
NYSE: JCI
Key Data Points
In fact, the matter was discussed the previous day in an Nvidia technical blog post, "Traditional data centers heavily rely on air cooling, which consumes significant energy to move and condition air. Vera Rubin NVL72 systems instead use warm-water, single-phase direct liquid cooling (DLC) with a 45-degree Celsius supply temperature."
What it means to Johnson Controls
That's great news for energy efficiency, but it's not great news for companies like Johnson Controls and Trane, which provide chillers and refrigeration solutions to keep data centers and, ultimately, servers cool. While data center-related revenue is likely responsible for a mid-teens percentage of Johnson Controls' revenue, it serves as a growth engine for the company. Consequently, today's sell-off in the stock and that of its peers like Trane is understandable.
