The AI liquid cooling market is projected to triple in size by 2030, reaching $6-7 billion, according to a report by Bernstein. The report highlights that cold plates, crucial components in liquid cooling systems, are at risk of commoditization due to design convergence expected between 2028 and 2030. The market, currently valued at $2-3 billion, is anticipated to grow at a compound annual growth rate (CAGR) of 20-30% over the next four years. Bernstein notes that the NVIDIA Rubin architecture has adopted 100% liquid cooling, eliminating the need for fans. However, the cold plate market faces challenges such as hardware gross margin compression and potential substitution by silicon-based microchannel etching technology. The report also outlines outperform target prices for companies like VRT, NVT, ETN, SBGSY, TT, and JCI, with CARR's target price aligning with market expectations.