One kind of expertise is turning into important to help Nvidia and different tech giants’ synthetic intelligence server necessities, based on Japanese financial institution Nomura. That is liquid cooling, a cooling expertise utilized in knowledge facilities which helps to enhance energy and price effectivity. The kind of cooling used thus far has been air cooling, however firms are beginning to search for different choices, based on Nomura. “As air cooling is approaching the restrict of its cooling capability, the significance of liquid cooling is getting more and more extra pronounced … liquid cooling [is] turning into essential for GB200,” stated the financial institution. The GB200 is Nvidia’s next-generation AI graphics processor, attributable to ship later this yr. Nomura estimates the liquid cooling penetration fee in Nvidia’s AI servers is about to rise from 8% in 2024 to 43% in 2025, and 47% in 2026. Tech firms have been capitalizing on the AI increase, driving the event of services and products in that space. It additionally implies that AI knowledge facilities are rising quick — as is demand for them. Information facilities home the huge quantities of computing energy wanted for AI workloads. Liquid cooling methods are the answer to “energy scarcity pressures” in knowledge facilities, Morgan Stanley stated in a earlier report . Such methods save between 10% and 15% in capital expenditure, it had stated. In opposition to that backdrop, Jefferies is bullish on 4 Asian shares it says can be “key beneficiaries” of the liquid cooling pattern. AVC: Jefferies says AVC ought to have no less than 50% market share in prime cloud service suppliers’ chilly plate orders for Nvidia’s G200. Chilly plates are a element that transfers warmth from the system that dissipates it in one other cooling system. It gave the inventory a value goal of 743 Taiwan {dollars} ($23.20), implying about 30% upside. Auras: Auras provides chilly plates to Tremendous Micro Laptop , which has been one other sizzling beneficiary of the AI increase. The Taiwan-based firm can be an “enabler” for electronics agency Quanta’s CDU (coolant distribution unit) for tech big Meta , Jefferies famous. It gave the inventory a value goal of 797 Taiwan {dollars}, implying round 25% upside. Delta: Taiwanese agency Delta is more likely to acquire market share for liquid cooling content material for tech giants together with Microsoft , Meta and Amazon Internet Companies, stated Jefferies. It gave the inventory a value goal of 490 Taiwan {dollars}, implying about 25% upside. Nidec: Japanese agency Nidec is a key supplier of coolant distribution models to Tremendous Micro Laptop and Jefferies says it is driving this enterprise “aggressively.” It gave the inventory a value goal of 9,000 Japanese yen ($62.6), implying round 53% upside. — CNBC’s Michael Bloom contributed to this report.
