Nvidia just unexpectedly tanked these stocks, and here’s why

Investors are feeling less hot about the makers of cooling systems for data centers after the CEO of Nvidia Corp. stoked concerns that demand for their products could dry up. 

Shares of Modine Manufacturing Co. led declines in this sector, tumbling as much as 21% Tuesday before recovering some of those losses to close about 7.5% lower. Other makers of water-cooled systems and similar products—including Johnson Controls International Plc, Trane Technologies Plc, and Carrier Global Corp.—also...