"We believe liquid cooling solution for NVDA's GB200 server rack system in data centers can create a US$4.8bn [total addressable market] by 2027," it said.
By enhancing thermal design power and more, such liquid cooling systems save between 10% and 15% on capital expenditure, according to Morgan Stanley.
"Heat flow knowhow, precision requirements and time-to-market delivery are key winning factors in this space," said Morgan Stanley analysts.
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.
"Our supply chain checks suggest AVC is the reference design for cold plate for NVIDIA's GB200 server rack liquid cooling system," it added.
Persons:
Morgan Stanley, Morgan, PUE, — CNBC's Michael Bloom
Organizations:
Stock, Companies, Schneider Electric, Delta Electronics, New, Nvidia
Locations:
Delta, New Taiwan