GE Vernova, Vertiv, and Bloom Energy Just Lost 10% to 24% in a Week. Here's What Set Off the AI Power Sell-off.

Ge Vernova, Vertiv, and Bloom Energy have all suffered losses of 10% to 24% over the past week as investors reassess the sustainability of the AI boom. The initial decline occurred on October 14th when surprising inflation data pushed up borrowing costs. At the same time, concerns over financing for AI-related projects, particularly in the context of CoreWeave's debt and its expansion plans, weighed on the market.

Despite their ongoing reliance on AI power demand, are these companies overlooking their long-term growth potential? Ge Vernova's business continues to demonstrate robust growth. In Q3, the company reported a $197 billion backlog, with orders increasing 96% year-over-year. The firm also raised its full-year 2026 revenue guidance to between $46.5 billion and $47.5 billion, indicating sustained demand for its power generation and electrification equipment.

Nevertheless, the company's valuation now stands at approximately 34 times forward P/E, leaving little room for error. Vertiv, another company affected by the broader AI sell-off, has its growth prospects tied to data center operations. Investors are questioning whether hyperscalers will maintain their aggressive spending habits.

Despite this, Vertiv reported a third-quarter 2026 revenue of about $4.3 billion, up 61% year-over-year. Organic orders have surged by more than 100%, more than doubling without acquisitions, demonstrating strong demand for its data center solutions. However, the company faces competition and execution risks. Vertiv's valuation is about 21 times forward P/E, which seems reasonably priced given its exposure to data center growth.

Bloom Energy, the third company affected by the AI sell-off, also faced pressure following its third-quarter results report on October 22nd. The company delivered record revenue of around $1.2 billion, up 138% year-over-year, and raised its full-year revenue guidance for the third time in 2026. However, high capital expenditures and negative free cash flow raised concerns about its ability to fund expansion efficiently.

Nonetheless, management remains confident in the company's outlook and growth prospects, raising guidance to between $4.4 billion and $4.6 billion. Despite the sell-off, all three companies are well-positioned to benefit from growing demand for power and AI infrastructure. The recent drop reflects growing concerns around AI spending, financing, and data center expansion.

However, each company offers a different way to capitalize on rising electricity demand, and their latest results suggest that their businesses remain strong. For cautious investors, Vertiv appears to be the safest option due to its reasonable valuation and order growth. Ge Vernova may appeal to investors seeking a record backlog despite its valuation, while Bloom Energy represents a higher-risk, higher-reward opportunity.

In conclusion, long-term investors may perceive the pullback as a potential entry point, especially those looking to buy these stocks at a discount.