On April 2, 2024, General Electric (GE -1.98%) spun off its energy division as GE Vernova (GEV +1.62%). It started trading at $143 per share on that first day, but eventually dropped to its all-time low of $122.46 on April 5. If you had invested $5,000 in GE Vernova's stock at that price, your investment would be worth more than $40,400 today.
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Why did GE Vernova deliver an eight-bagger gain?
GE Vernova operates three core businesses: Power (55% of its 2025 orders), Electrification (33%), and Wind (13%). Since its market debut, the Power and Electrification segments have grown rapidly to meet the demands of the power-hungry cloud, data center, and AI markets. That growth offset the softness of its Wind segment, which grappled with supply chain issues.
NYSE: GEV
Key Data Points
GE Vernova's orders rose 7% organically in 2024, then accelerated to 34% growth in 2025. From 2025 to 2028, analysts expect its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 17% and 60%, respectively.
Therefore, GE Vernova's stock soared because it was a well-balanced play on the expanding AI market. With an enterprise value of $252 billion, it isn't cheap at 40 times this year's adjusted EBITDA -- but its robust growth rates could support that premium valuation.
