Busy Searching for Related Stocks Amid AI Boom... 'This Sector' Also Rose Significantly

Stocks Related to Server Cooling Systems

The surge in artificial intelligence (AI) has caused a sharp increase in power demand at data centers, drawing attention to stocks related to server cooling systems, the Wall Street Journal (WSJ) reported on the 29th (local time). Since the data processing involved in AI inference and training generates massive heat energy, infrastructure to cool it is naturally needed.

According to WSJ, the stock price of Vertiv (VRT), listed on the New York Stock Exchange, has surged about 700% since the end of 2022. It has also jumped about 130% this year. Vertiv announced that orders in the first quarter increased by 60% compared to the same period last year, resulting in a record-high order amount of $6.3 billion. Vertiv possesses technology that circulates liquid coolant through pipes to absorb heat from equipment inside data centers.

As the AI wave expands to Asia, the stock prices of Taiwan’s Asia Vital Components (AVC) and Oras Technology have soared 600% and 510%, respectively, since the end of 2022.

[Image source=Getty Images]

WSJ pointed out that big tech companies such as Microsoft (MS) and Meta Platforms pouring massive investments into building AI data centers have been a key factor in the rise of cooling system-related stocks. In particular, with recent generative AI emphasizing multimodal capabilities including not only text but also images and videos, the need for more advanced data center construction has increased, leading to a surge in demand for cooling system infrastructure as well.

Goldman Sachs forecasted that the adoption rate of AI servers will more than double from 23% this year to 57% in 2026. Accordingly, the server cooling system industry is expected to benefit from this ripple effect. During the same period, the server cooling system market is predicted to grow from $4.1 billion to $10.6 billion.

However, since the AI industry is still in its early stages and the stock prices of companies related to server cooling systems have already factored in expectations, caution is advised when considering purchases.