TLDRs;
- Vertiv shares swing sharply after Nvidia’s CES cooling remarks spark uncertainty.
- Barclays says Vertiv is well-positioned for liquid and precision cooling solutions.
- Stock rebounds from intraday lows, with $175 now a near-term target.
- Investors await February earnings for AI data center orders and margin guidance.
Vertiv Holdings (VRT) shares experienced pronounced intraday swings on Tuesday, reflecting investor uncertainty over the future of data center cooling in the age of artificial intelligence.
The stock closed at $174.95, up 0.6% from Monday’s close, after dipping as low as $162.42, with roughly 7.8 million shares traded. Traders have increasingly treated Vertiv as a proxy for AI infrastructure demand, meaning any hints of shifting cooling requirements can trigger dramatic market reactions.
Nvidia Sparks Cooling Debate
The volatility followed remarks by Nvidia CEO Jensen Huang at the CES technology show in Las Vegas. Huang announced that the company’s upcoming Vera Rubin platform will enter full production and will not require traditional water chillers, systems widely used to cool high-power server racks.
The statement jolted the sector, with companies tied to cooling infrastructure reacting sharply. Johnson Controls closed down 6.2%, Trane Technologies fell 2.5%, while Carrier Global edged down 0.5%. Conversely, nVent Electric gained 3.3%, highlighting divergent investor views on which suppliers will benefit from evolving cooling technologies.
Liquid and Precision Cooling in Focus
Barclays analysts emphasized that while Nvidia’s comments should not be ignored, Vertiv and nVent remain well-positioned in the precision and liquid cooling markets. Liquid cooling, which circulates fluid close to servers, enables higher chip densities than conventional air systems.
Precision air cooling, by contrast, relies on controlled airflow within the data hall and remains widely used. For Vertiv, the market debate isn’t about reduced demand for cooling equipment, but rather the type of investment data centers will make as chip power increases.
Stock Rebounds Amid Investor Caution
After hitting the session low near $162, Vertiv shares rebounded to end modestly positive. This late recovery has left technical traders focused on the $162 level as a near-term support line, with $175 now in view. Analysts caution that a break below support could raise questions about how quickly suppliers can adapt as data center designs evolve to accommodate next-generation chips.
The short-term swings underscore broader uncertainty in the sector as AI-driven hardware continues to push thermal demands higher.
Eyes on Upcoming Earnings
Attention now turns to Vertiv’s next financial results, with expectations for an update around February 11, before the U.S. market opens. Investors will be closely watching order growth tied to AI data centers and thermal segment margins.
Potential risks include delays or redesigns in customer facilities, which could squeeze near-term orders and pricing, and a broader slowdown in cloud or colocation capital spending, which might test the sector’s order backlog. Analysts expect the earnings report to offer a clearer view of 2026 demand trends and the pace at which facilities shift toward liquid cooling solutions.
As the AI computing landscape evolves, Vertiv’s stock may remain sensitive to any changes in data center cooling requirements. While the intraday swings reflect near-term uncertainty, the company’s positioning in liquid and precision cooling could make it a long-term beneficiary of higher-density AI deployments. Investors will continue parsing both industry commentary and upcoming earnings data to gauge where the market is headed.
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