Jensen’s Eminem-Level Diss Track Tanks Data Center Stocks (Water Only)

“I don’t want to play with you anymore” - Jensen to data centers 

(Source: Imgflip) 

Yesterday we reported how Jensen Huang and Nvidia are basically nuking every competitor in the valley with their thicc and juicy Rubin chip. Today, Jensen is back on his BS as he’s done kneecapped the data center cult. 

In short, Nvidia’s Rubin chip doesn’t need no scrubs (read: exotic cooling) anymore. All it takes is room-temperature water. And with that, an entire corner of the AI trade got shoved down a flight of stairs. For instance, cooling-system stocks… the ones everyone piled into last year because “AI racks run hot”... immediately started leaking oil. Johnson Controls International ate a six-handle drawdown. Modine Manufacturing got absolutely mauled before clawing back from a near-death experience. Trane caught strays. The whole complex suddenly looked like it had been built on a single assumption that Jensen just invalidated on stage, in Vegas, with a smile. Bigly. 

(Source: Bloomberg) 

Last year, the market decided that if AI was going to melt silicon, then anyone selling the fans, pipes, chillers, and coolant deserved a valuation rerate. Fair enough. Capital rushed in. Cooling names ripped. Narratives were not only born, but they absolutely printed. Then Jensen shows up and says “I don’t want to play with you anymore.” This is exactly why the selloff was violent. Not because earnings disappear tomorrow, but because the terminal story just changed. When Nvidia says something like this, the market hears: Future data centers won’t look like the ones you modeled. And that, my friends, is lethal to any stock trading on long-dated capex assumptions. 

Of course, the analysts immediately rushed in with the usual damage control. “Overdone.” “Manageable risk.” “Still relationships.” Which may all be true. Cooling doesn’t vanish overnight and data centers still generate heat. Translation: Physics still exists. But that’s not the point. The point is that Nvidia keeps moving the goalposts faster than suppliers can reprice themselves. Case in point: Look at what happened next. While cooling names were bleeding, storage stocks ripped. Jensen mentioned memory, and suddenly Sandisk went vertical like it had just been rediscovered by civilization. That’s the pattern. 

Live look at Sandisk investors right about now:

(Source: Giphy)

Even companies like Vertiv Holdings, which actually have exposure to liquid cooling and power infrastructure, barely flinched. The market made a distinction. Chillers as a thesis got hit. Broader infrastructure plays survived. Nuance matters when the stack leader speaks. Zoom out and this is just another reminder of where we are in the AI cycle. We’re past the “buy everything with AI in the deck” phase. We’re in the pruning phase, where Nvidia’s roadmap quietly decides which industries get to keep their margins and which ones get compressed into utility providers. Fun times. Meaning, Jensen didn’t tank cooling stocks by accident… he just didn’t care enough to protect them. Savage. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.