Amazon Web Services’ new In-Row Heat Exchanger (IRHX) allows it to accommodate Nvidia’s heat-intensive GPU racks without requiring major data center renovations. The project moved from concept to production within just 11 months.

Shares of Vertiv (VRT) fell sharply on Thursday following Amazon’s (AMZN) announcement that it had developed its own cooling system tailored to support Nvidia’s (NVDA) high-performance chips.

Vertiv’s stock fell over 10% in morning trade but trimmed its decline to 6% by midday. Despite the slump, retail sentiment on Stocktwits surged to ‘bullish’ from ‘bearish’ a day ago as chatter exploded to ‘high’ levels from ‘low’ during the same period. The stock was among the top trending tickers on the platform.

Meanwhile, Amazon’s stock traded near the flatline, edging lower by 0.14% in midday trade on Thursday. Retail sentiment around the stock continues to trend in ‘extremely bullish’ territory as compared to a day ago, amid ‘high’ levels of chatter.

The drop in Vertiv’s stock was triggered by Amazon Web Services' (AWS) new In-Row Heat Exchanger (IRHX), a proprietary system built to meet the thermal demands of Nvidia’s Blackwell GPUs, launched on Wednesday. The product would compete with Vertiv’s range of cooling technologies for data centers, including its liquid-based CoolPhase Flex platform.

The new AWS system combines air and liquid cooling methods and was developed in partnership with Nvidia. The system combines liquid and air-based components, circulating coolant to GPU chips through cold plates while removing heat via fan-coil arrays.

In a blog post, AWS Vice President Dave Brown said traditional solutions were either too water-intensive or required significant space, making them less viable for the company’s high-density AI workloads.

AWS' new P6e-GB200 UltraServers, which are powered by Nvidia Grace Blackwell superchips, are specifically designed to handle the most sophisticated artificial intelligence models, Brown said.

The custom solution would allow AWS to accommodate Nvidia’s heat-intensive GPU racks without requiring major data center renovations. The project moved from concept to production within just 11 months. 

Vertiv’s stock has gained 4% so far this year and 30% over the past 12 months.

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