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PALM BEACH GARDENS, Fla. - Carrier Global Corporation (NYSE: NYSE:CARR), a prominent player in the Building Products industry with a market capitalization of $56.55 billion and annual revenue of $22.49 billion, has announced a significant investment in ZutaCore, a company specializing in innovative liquid cooling technology for data centers. This move is part of Carrier's strategy to address the increasing cooling demands of high-density computing, particularly in the AI sector. According to InvestingPro analysis, Carrier maintains a solid financial position with a healthy current ratio of 1.25 and moderate debt levels.
ZutaCore, based in San Jose, California, offers a waterless liquid cooling solution that directly cools computer chips. This technology, known as HyperCool®, is designed to manage the heat generated by the latest high-performance processors, enabling 100% heat reuse and contributing to lower emissions in the data center industry. Carrier's robust revenue growth of 18.65% over the last twelve months positions it well for such strategic investments. InvestingPro subscribers can access detailed analysis and 12 additional ProTips about Carrier's growth prospects and market position.
The partnership between Carrier and ZutaCore aims to combine their expertise to deliver sustainable, energy-efficient cooling solutions tailored to the needs of next-generation AI and data processing workloads. This collaboration is expected to revolutionize cooling practices in data centers globally.
Carrier's investment in ZutaCore aligns with its broader goals of redefining thermal management in data centers. The company recently introduced Carrier QuantumLeap™, a suite of energy-efficient thermal management solutions. Through its venture group, Carrier Ventures, the company continues to invest in disruptive technologies that shape the future of building and cold chain management.
The global data center cooling market is projected to reach $20 billion by 2029, with liquid cooling expected to see a compound annual growth rate of 39% over the same period. Trading at a P/E ratio of 52.19, Carrier's strategic investment in ZutaCore is a response to this growing market and the increasing need for advanced cooling systems due to the rise of high-density computing driven by AI. While the company shows strong operational metrics, InvestingPro's Fair Value analysis suggests the stock may be currently overvalued.
This information is based on a press release statement from Carrier Global Corporation.
In other recent news, Carrier Global Corporation has been making significant strides in the market. Analysts at Mizuho (NYSE:MFG) Securities have upgraded Carrier Global's stock rating from Neutral to Outperform, highlighting the company's robust free cash flow generation and growth algorithm. They noted a significant valuation gap compared to similar HVAC companies, despite Carrier Global's strong financial performance and market position.
On the earnings front, Carrier Global recently reported better-than-expected Q4 results, with adjusted earnings per share of $0.54, surpassing analyst estimates. Revenue, however, was slightly below consensus at $5.15 billion, but still represented a 19% YoY increase. The company's Q4 sales were primarily driven by an 11% organic growth in its HVAC segment.
Looking ahead, Carrier Global projects an adjusted EPS of $2.95-$3.05 for the full year 2025, in line with analyst expectations. The company also anticipates revenue between $22.5-23 billion. These recent developments reflect a period of transformation and growth for Carrier Global, with expectations of continued progress in the coming years.
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