GE Vernova's (GEV +3.58%) great run continues, with the stock rising another 14.6% this week after the company reported stellar first-quarter earnings. The company's power and electrification solutions make it a leading player in the build out of AI infrastructure, and the latest earnings report confirms it has many years of growth ahead,
GE Vernova's updates guidance
CEO Scott Strazik wasted no time on the earnings in declaring the good news of the quarter "In the last 90 days, we've added $13 billion to our total backlog and now expect to reach $200 billion in backlog in '27 versus our previous expectation of '28."
NYSE: GEV
Key Data Points
It gets better. It's one thing to grow the equipment backlog, but it's another to sign so-called slot reservation agreements (SRAs) under which customers pay upfront to secure slots for equipment in the future. This is an indication of how desperate hyperscalers are to secure power for their AI data centers.
The company's gas power equipment backlog and SRAs rose to 100 Gigawatts (GW) from 83 GW through the quarter. For example, consider that 1 GW of power can be enough to supply 750,000 homes for a year. So, the increase in the backlog and SRA through the quarter is equivalent to the power needed for 12.75 million homes for a year.
As for the SRA component of the 100GW figure, it rose to 56GW from 44GW. Moreover, the market isn't just penciling in an increase in equipment orders, because the reality is GE Vernova makes more money from a long tail of services revenue that flows from increasing its installed base of equipment.
Image source: Getty Images.
Where next for GE Vernova
Strazik noted that "Our momentum has continued into April. Quarter-to-date, we have booked more power equipment orders in terms of value than we did in all of Q1'26," and GE Vernova remains one of the best AI infrastructure stocks to buy.
