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Trane Technologies PLC (TT) experienced a significant stock decline on January 6, 2026, falling 7.59% to $361.30 as of 10:31 AM EST. The selloff was triggered by concerns emerging from Nvidia (NVDA) CEO Jensen Huang’s presentation at CES 2026, where he announced that the company’s new Vera Rubin chip platform would maintain the same cooling requirements as previous generations despite substantial power increases.

This development has raised alarm bells across the HVAC industry, as it suggests future data centers may require significantly less traditional cooling infrastructure, potentially reducing demand for products that have been a growing revenue source for companies like Trane Technologies.

HVAC Stocks Slide After Nvidia Data Center Comments
 

The concerns about Nvidia’s cooling innovations sparked a broader selloff across the HVAC sector. Johnson Controls (JCI) suffered the steepest decline, falling 10% on the day, while Carrier Global (CARR) dropped 5%.

Barclays analyst Julian Mitchell identified companies focused on space cooling, chillers, and air handling with minimal presence in liquid cooling as most vulnerable to this technological shift. Johnson Controls appears particularly exposed, with data centers representing a low-double-digit percentage of total sales.

Trane Technologies, with approximately 10% of sales derived from data centers, faces moderate exposure to this market disruption. Carrier Global, with roughly 5% exposure to data center cooling, appears less vulnerable but still felt market pressure.

The analyst noted that Huang’s statement that “no water chillers are necessary for datacenters” due to liquid cooling innovations could fundamentally alter the growth trajectory for traditional HVAC providers who have been betting on data center expansion to drive future revenues.

TT Stock Performance and Market Reaction
 

As of the market close on January 6, 2026, Trane Technologies traded at $361.30, down from its previous close of $390.97. The company’s market capitalization stood at $80.59 billion, with a trailing P/E ratio of 27.73 and forward P/E of 26.88.

Despite the day’s sharp decline, Trane has delivered strong long-term performance, with a 5-year return of 157.55% compared to the S&P 500’s 84.98% gain over the same period. However, the year-to-date return shows TT down 6.94% while the broader market gained 1.28%.

The company maintains solid fundamentals with a profit margin of 13.93%, return on equity of 37.21%, and trailing twelve-month revenue of $21.05 billion. Analysts maintain a generally positive outlook with an average price target of $478.91, significantly above the current trading price.

However, the data center cooling concerns may prompt analysts to reassess their forecasts. Not all companies in the sector face negative implications- nVent Electric (NVT) and Vertiv Holdings (VRT) were identified as potential beneficiaries due to their positions in liquid cooling technologies rather than traditional air-based systems.

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