GE Vernova Rides AI-Driven Power Demand

AI Power Needs Propel GE Vernova

GE Vernova is emerging as a key beneficiary of surging energy demand from artificial intelligence, cloud computing, data centers, and manufacturing. The company, one of three independent entities created from General Electric’s breakup in 2024, supplies both equipment and services aimed at easing power constraints facing major technology players. Management has described the environment as a potential “supercycle of significant growth” as customers seek reliable, large-scale power solutions.

The company operates three main business lines: power, wind, and electrification. While the wind segment is being downsized, GE Vernova’s power and electrification operations are expanding rapidly on the back of AI and industrial power needs. The company is positioning itself not only to serve data center operators and cloud providers but also to address broader system requirements across the grid.

Strong Order Growth and Expanding Backlog

GE Vernova’s order trends underscore the scale of current demand. The company’s orders and backlog have grown 55% year over year to $14.6 billion. This expansion reflects heightened demand for gas power equipment, services, and electrification solutions that can support large and energy-intensive computing operations, as well as traditional industrial customers.

In an investor update on Dec. 11, Chief Financial Officer Ken Parks laid out the company’s outlook for 2026 and beyond. GE Vernova expects revenue from its power segment to increase 16% to 18% in the next year, while electrification revenue is projected to grow around 20%. On this basis, total company revenue could reach about $41 billion in 2026, illustrating management’s confidence in sustained demand.

Looking further ahead, GE Vernova anticipates that its electrification and gas equipment backlogs will double over the next three years, through 2028. The company expects this expanding backlog to support growth into the 2030s as customers invest in new generation capacity and grid infrastructure. These projections are built on current order visibility and the scale of power needs tied to AI and industrial usage.

Market Performance and Capital Returns

Since its spinoff from General Electric in March 2024, GE Vernova’s stock has increased by more than 450%. Recent trading data shows the shares up 6.12% on the day, with a current price reported at $681.55, a 52-week range between $252.25 and $731.00, and a market capitalization of about $185 billion. The stock’s move has occurred alongside rising volume, with 5 million shares traded versus a 3.3 million average.

The company has also begun returning cash to shareholders. GE Vernova recently initiated dividends and raised its quarterly payout from $0.25 to $0.50 per share. At recent prices, the dividend yield stands at about 0.18%. Management’s willingness to increase dividends at this early stage reflects confidence in the cash generation potential of its power and electrification businesses.

Role in Grid Modernization and Upcoming Results

Beyond serving individual customers, GE Vernova is positioning itself as a key player in modernizing an aging and stressed power grid. The company’s electrification offerings target grid upgrades and reliability improvements that are becoming more urgent as AI and data center loads grow. This dual focus on customer-specific power needs and broader grid infrastructure supports management’s long-term growth narrative.

Investors will receive a more detailed update on performance when GE Vernova reports its fourth-quarter and full-year 2025 results on Jan. 28. The company has indicated optimism that, if recent momentum continues, 2026 could mark another strong year of growth. Market commentary surrounding the stock emphasizes its potential importance in meeting rising power demand from nearly all major AI players in the years ahead.