Not Bloom Energy. Not Vistra. This AI Power Stock Just Posted a 96% Jump in Orders.
The impending change in the political backdrop isn't apt to actually affect the growing demand for its equipment, either.
General Electric's power subsidiary, GE Vernova, has seen a remarkable surge in orders for power-generating equipment, posting a staggering 96% increase year-over-year. This unexpected champion of the artificial intelligence revolution is often overshadowed by larger names like Vistra and Bloom Energy, which have been directly involved in powering AI data centers for companies like Meta Platforms and Amazon.
GE Vernova, a division of the iconic industrial conglomerate General Electric, specializes in wind turbines, utility-scale grid equipment, hydropower solutions, and natural gas turbines.
The company's third-quarter top line reached $12.6 billion, marking an 18% year-over-year growth, signaling a growth trend that has been accelerating since 2024. While electrification sales grew the fastest, orders for power hardware saw the most significant increase. In Q3, total orders surged by 96% to $29 billion, inflating GE Vernova's total backlog to an impressive $197 billion, which is almost four years' worth of revenue at its current annual run rate.
The company anticipates this backlog to surpass $200 billion by the end of the year, even as it fulfills some of these orders during the current quarter.
Analysts are optimistic about GE Vernova's fourth-quarter sales, projecting them to reach $14 million, a 28% increase from last year's Q4 revenue. The recent dip in shares of GE Vernova, Vistra, Bloom Energy, and other names in the power production sector following the midterm elections, which could potentially grant Democrats control of the U.S. Senate and House of Representatives, might seem like a cause for concern.
However, this sell-off could actually present a buying opportunity rather than a warning sign. GE Vernova's energy businesses are environmentally friendly, improve power efficiency, or both. With AI data center expansion potentially facing political hurdles, the company's diverse portfolio and the demand for its solutions remain largely unaffected.
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