GE Vernova has surged over 500% since its 2024 spin-off from General Electric, establishing itself as a key AI infrastructure play. According to reports from The Economic Times, the company began trading as an independent business on the New York Stock Exchange (NYSE) in April 2024 and its shares now trade above $1,100, giving the power equipment maker a market value of more than $300 billion. The rally reflects investor confidence in the physical infrastructure needs of artificial intelligence development, with the company becoming one of Wall Street's clearest AI-power trades as investors bet that artificial intelligence will need far more electricity, grid equipment and gas turbines than markets had expected.
The company's growth is being driven by the physical side of AI development, as reported by The Economic Times. Data centres need power around the clock and require turbines, transformers, switchgear and grid equipment. GE Vernova sits in this supply chain through its power and electrification businesses, positioning itself beyond traditional chip-focused AI stocks. The turning point came as investors started looking beyond Nvidia and cloud companies to the next bottleneck in AI infrastructure, recognizing that data centres still need reliable electricity and grid connections despite their ability to purchase chips. As per Reuters, demand from data centres and grid infrastructure helped GE Vernova raise its annual revenue and margin forecasts earlier this year.
CEO Scott Strazik reported that demand was accelerating for the company's power and electrification solutions from a broad set of customers, as reported by The Economic Times. GE Vernova raised its 2026 guidance, now expecting revenue of $44.5 billion to $45.5 billion, adjusted EBITDA margin of 12% to 14% and free cash flow of $6.5 billion to $7.5 billion. The gas turbine business is another key driver, with the company expecting to reach at least 110 GW of combined gas turbine backlog and slot reservation agreements by the end of 2026. Earlier, its gas power equipment backlog and slot reservation agreements had already risen from 62 GW to 83 GW by the end of 2025.
The market is rewarding GE Vernova's electrification business, with utilities and data centre developers spending on grid equipment as power demand rises after years of flat consumption in the US, according to The Economic Times. The company's Prolec GE acquisition has strengthened its ability to serve utilities, industrial customers and data centres by completing the purchase of the remaining 50% stake in Prolec GE, a grid equipment supplier. The acquisition has added significantly to the company's ability to serve the growing demand from data centres and grid infrastructure, positioning GE Vernova as a comprehensive solution provider for AI infrastructure needs. Recent market analysis supports this theme, with companies like Schneider Electric, Eaton, and Vertiv reporting strong growth led by data centre demand, while the International Energy Agency expects global data-centre electricity use to more than double by 2030.
