Morgan Stanley says Nvidia's GPU cooling needs are a $4.8 billion opportunity, names stocks to benefit

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Morgan Stanley,NVIDIA Corp,Delta Electronics Inc

Liquid cooling systems are the solution to 'power shortage pressures' in data centers, the bank said in a July 30 report.

The cooling required for Nvidia's GPU server rack systems in data centers is set to create a $4.8 billion market by 2027, according to Morgan Stanley Liquid cooling systems are the solution to "power shortage pressures" in data centers, the bank said in a July 30 report. "We believe liquid cooling solution for NVDA's GB200 server rack system in data centers can create a US$4.8bn by 2027," it said.

It said it likes Taiwanese firm Delta as it believes its liquid cooling solution will add an additional $280 million in AI cooling revenue in 2025. "We like its integrated solution for both power and cooling offerings for data centers. We think it offers the most effective design to hyperscalers and data center operators, as it aims to lower the total cost of ownership while meeting PUE requirements," the bank's analysts wrote.

 

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