Data-Center Cooling Stocks Sink After Nvidia CEO’s CES Talk (3)

Makers of cooling systems saw their stocks sell off Tuesday after comments by Nvidia Corp.’s chief executive raised fears about demand for their products from data centers.

Johnson Controls International Plc, which makes water-cooled chillers and similar systems, slid 6.2% in its worst day since July. Modine Manufacturing Co. closed down 7.5% after paring an earlier drop of as much as 21%. Trane Technologies Plc fell 2.5%.

Jensen Huang

Photographer: Bridget Bennett/Bloomberg

It’s possible to cool racks with Nvidia’s next-generation Rubin chips using water at a temperature that does not require a water chiller, the company’s CEO, Jensen Huang, said at ...