Top Stocks To Benefit As Goldman Sachs Touts Liquid Cooling As The Next AI Trade

The artificial intelligence (AI) boom has produced some major winners, including GPU companies like NVIDIA (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), and memory companies like Sandisk (NASDAQ:SNDK) and Micron (NASDAQ:MU). 

Goldman Sachs Analyst Touts Liquid Cooling As Next AI Trade

Now, a senior Goldman Sachs (NYSE:GS) analysts has predicted that liquid cooling is the next big AI trade to consider. In a podcast, Shawn Tuteja, who covers technology for the company, said that data center companies will shift to liquid cooling solutions to save money.

The argument is that a shift to liquid cooling will see companies save as much as 10x the amount of electricity that goes towards cooling. While the liquid cooling theme is up by 30% this year, he expects that companies in the industry have room to run. 

Top Companies Set To Benefit Amid Liquid Cooling Demand

Vertiv Holdings (NYSE:VRT), the biggest pure-play player in the liquid cooling industry, has already jumped by 1,110% in the last five years and is up by 95% this year. It has reported strong financial results, and analysts expect that its annual revenue will jump 35% this year to $13.8 billion and 28% next year to $17.8 billion.

Carrier Global (NYSE:CARR), a top player in the air conditioning industry, has become another major player in the liquid cooling industry, through the QuantumLeap solution. In its recent earnings, the company said that its data center orders jumped by over 500% in the last quarter. 

nVent (NYSE:NVT) is another top company aiming to benefit from the liquid cooling theme. Its stock has jumped by 165% in the last 12 months, with its market cap jumping to over $265 billion. 

It noted that its revenue jumped by 53% in Q1 to $1.2 billion, with the backlog rising to over $2.6 billion. Most of this growth was from its liquid cooling business. It expects that CoolIT will make over $550 million in annual revenue and will help to complement its water and chemistry solutions. 

Meanwhile, Ecolab (NYSE:ECL), a company that offers water and hygiene solutions, is entering the industry by acquiring CoolIT in a $4.75 billion deal.

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