What Happened?
Shares of infrastructure equipment supplier SPX Technologies (NYSE:SPXC) fell 1.1% in the morning session after investor concerns persisted over a potential shift in data center cooling technology announced by Nvidia.
The worries stemmed from Nvidia's mention of "warm-water cooling" during a keynote presentation, which sparked an initial sell-off. Investors seemed to fear that a change in technology preferences could reduce demand for SPX's products. According to analysis from TD Cowen, the market may have misinterpreted the announcement. The firm emphasized that SPX's cooling towers remained "essential for heat rejection in liquid cooled data center systems." Despite the view that the sell-off was unwarranted, the negative sentiment appeared to carry over and weigh on the shares.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy SPX Technologies? Access our full analysis report here.
What Is The Market Telling Us
SPX Technologies’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock gained 14.5% on the news that the company reported strong fourth-quarter results, with revenue rising 14% year-on-year, fueled by continued strength in its HVAC segment. SPXC's full-year 2025 guidance for revenue and adjusted EBITDA also came in above analysts' expectations. Overall, the quarter highlighted key positives.
SPX Technologies is up 1.5% since the beginning of the year, and at $206.21 per share, it is trading close to its 52-week high of $224.93 from November 2025. Investors who bought $1,000 worth of SPX Technologies’s shares 5 years ago would now be looking at an investment worth $3,563.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.