Gas Turbine Prices Are on Track to Nearly Triple. These Stocks Are Cashing In.
Demand for heavy-duty gas turbines to power AI data centers is a feature of the global economy.
Gas turbine prices are on track to nearly triple, with leading companies seeing significant gains. Fossil fuel skepticism from the past decade's renewable energy focus has shifted, with natural gas now driving demand for power from AI data centers. This surge has benefited stocks of key players like GE Vernova (NYSE: GEV), Siemens Energy, and Mitsubishi Heavy Industries.
These companies have seen shares soar in recent years, offering excellent exposure to the trend. Additionally, a lower-risk ETF, Global X MLP & Energy Infrastructure ETF (NYSEMKT: MLPX), provides an alternative way to gain exposure. Wood Mackenzie, an industry analyst, reports gas turbine prices have increased by 195% since 2019, a remarkable turnaround.
GE Vernova's remaining performance obligations (RPO) have risen to $176 billion, with CEO Scott Strazik forecasting it will reach $200 billion by 2027, indicating a near-doubling from 2022.
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