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Shares of companies supplying cooling systems for data centers dropped sharply following statements from Nvidia CEO Jensen Huang. At CES, Huang announced that the upcoming Rubin chip can be cooled with water at temperatures that do not require traditional cooling units.

Analysts now see increased uncertainty regarding long-term demand for cooling units as liquid cooling becomes more common, although short-term effects are assessed to be limited. Trane Technologies saw a decline of up to 10% but closed down 2.5%, while Modine Manufacturing experienced a drop of around 20% at its lowest point, closing down 7.5%. Johnson Controls and Carrier also saw declines.