One sort of know-how is changing into important to assist Nvidia and different tech giants’ synthetic intelligence server necessities, in keeping with Japanese financial institution Nomura. That is liquid cooling, a cooling know-how utilized in information 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, in keeping with 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] changing into vital for GB200,” mentioned the financial institution. The GB200 is Nvidia’s next-generation AI graphics processor, because of ship later this 12 months. Nomura estimates the liquid cooling penetration charge in Nvidia’s AI servers is ready 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 information facilities are rising quick — as is demand for them. Knowledge facilities home the huge quantities of computing energy wanted for AI workloads. Liquid cooling programs are the answer to “energy scarcity pressures” in information facilities, Morgan Stanley mentioned in a earlier report . Such programs save between 10% and 15% in capital expenditure, it had mentioned. Towards that backdrop, Jefferies is bullish on 4 Asian shares it says might be “key beneficiaries” of the liquid cooling pattern. AVC: Jefferies says AVC ought to have not less than 50% market share in high cloud service suppliers’ chilly plate orders for Nvidia’s G200. Chilly plates are a part that transfers warmth from the machine that dissipates it in one other cooling system. It gave the inventory a worth 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 scorching beneficiary of the AI increase. The Taiwan-based firm can also be an “enabler” for electronics agency Quanta’s CDU (coolant distribution unit) for tech big Meta , Jefferies famous. It gave the inventory a worth goal of 797 Taiwan {dollars}, implying round 25% upside. Delta: Taiwanese agency Delta is prone to acquire market share for liquid cooling content material for tech giants together with Microsoft , Meta and Amazon Net Companies, mentioned Jefferies. It gave the inventory a worth 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 worth goal of 9,000 Japanese yen ($62.6), implying round 53% upside. — CNBC’s Michael Bloom contributed to this report.
