The leaders in artificial intelligence (AI) simply cannot find enough power. The unprecedented demand from cloud computing, data centers, and manufacturing has left a massive void that GE Vernova (GEV +6.09%) is hoping to fill with both its equipment and services.
NYSE: GEV
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A bright future ahead
GE Vernova, one of three independent spinoffs from the legacy company General Electric, has three main lines of business: power, wind, and electrification. Its wind segment is being downsized, but GE Vernova's power and electrification businesses are lighting up.
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GE Vernova's orders and backlog have grown 55% year over year to $14.6 billion. In an investor update on Dec. 11, CFO Ken Parks detailed the outlook for 2026 and beyond. In the next year, GE Vernova expects revenue from its power segment to increase 16% to 18% and electrification to increase around 20%.
Total revenue for the company could total $41 billion in 2026. GE Vernova is bullish on its own growth prospects through 2028, with the electrification and gas equipment backlogs doubling in the next three years. This, according to the company, will drive growth through the 2030s.
The stock has skyrocketed by over 450% since it was spun off in March 2024. GE Vernova has begun paying dividends and recently increased payouts from $0.25 to $0.50 per share quarterly. I'd expect this trend to continue through the rest of the decade as the company supplies power and equipment for nearly all of the major AI players.
The power grid needs GE Vernova
GE Vernova stands to make a fortune not just from electrification, but because it's uniquely positioned to modernize an aging and stressed power grid.
GE Vernova will announce its fourth-quarter and full-year 2025 results on Jan. 28. If it continues to impress as analysts anticipate, expect another solid year of growth. Moreover, GE Vernova is going to be an essential asset in meeting the power demand for years to come.
