AI's 30% Power Increase to Spark 'Unprecedented' Energy Boom: Which Energy Stocks and ETFs Are Poised for Success
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 04 2025
0mins
Source: Benzinga
Surge in Global Power Demand: Global power demand is expected to increase by 30% by 2035, primarily driven by the energy needs of data centers as AI adoption accelerates, with their share of total power use projected to double.
Winners in the Energy Sector: Independent Power Producers (IPPs) and the nuclear energy sector are benefiting significantly from this demand surge, with notable stock performances from companies like Vistra Corp. and Cameco Corp.
Innovative Solutions for Energy Crisis: Tech companies are exploring unconventional solutions to address the energy crisis caused by AI, including floating data centers and orbital data centers to harness solar power.
Investor Focus on Established Power Producers: As the energy crisis intensifies, investors are increasingly targeting established power producers that are poised to meet the growing energy demands of the AI sector.
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Analyst Views on GEV
Wall Street analysts forecast GEV stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GEV is 769.15 USD with a low forecast of 475.00 USD and a high forecast of 1000.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
16 Buy
6 Hold
1 Sell
Moderate Buy
Current: 823.670
Low
475.00
Averages
769.15
High
1000.00
Current: 823.670
Low
475.00
Averages
769.15
High
1000.00
About GEV
GE Vernova Inc. is a purpose-built global energy company that includes Power, Wind, and Electrification segments and is supported by its accelerator businesses. It designs, manufactures, delivers, and services technologies to create a sustainable electric power system, enabling electrification and decarbonization. Power segment includes the design, manufacture, and servicing of gas, nuclear, hydro, and steam technologies, providing a critical foundation of dispatchable, flexible, stable, and reliable power. Wind segment includes its wind generation technologies, inclusive of onshore and offshore wind turbines and blades. Electrification segment includes grid solutions, power conversion and storage, and electrification software technologies required for the transmission, distribution, conversion, storage, and orchestration of electricity from point of generation to point of consumption. Its accelerator business includes advanced research, consulting services and financial services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
- Infrastructure Investment Opportunities: With spending accelerating, investors are drawn to
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- Stock Performance: Companies like Dupont, Dover, Honeywell, Linde, GE Vernova, and Eaton have shown extraordinary year-to-date performance, even as the S&P 500 has only seen slight gains, highlighting the significance of these cyclical stocks in the current market environment.
- Cisco Earnings Impact: Cisco's earnings report on Wednesday, despite a networking order growth exceeding 20%, saw shares drop over 10% on Thursday due to a dip in gross margins from rising memory prices, reflecting market concerns over its profitability.
- Apple Developments: Apple's shares fell more than 3% on Thursday, influenced by Cisco's warnings, and although iPhone sales remain strong, issues with the Siri upgrade testing and a delayed full launch could impact future market performance.
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- Industrial Stock Rally: In 2026, industrial stocks like DuPont have shown remarkable performance, with DuPont up approximately 28% year-to-date, reflecting market confidence in industrial recovery; JPMorgan raised its price target from $50 to $57, indicating optimism about future growth.
- Cisco's Decline: Despite reporting strong quarterly results and raising its annual outlook, Cisco's stock fell about 7% in pre-market trading due to high memory prices squeezing gross margins, highlighting market concerns over its future profitability, prompting us to trim our position ahead of the report to mitigate risk.
- AI Market Funding: Anthropic is set to close a $20 billion funding round, valuing the company at $350 billion, which is crucial for the AI sector as it supports cloud providers' infrastructure investments, ensuring sustained compute demand that drives growth in related industries.
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- Dover's Performance Surge: Dover's investments in industrial sectors have resulted in double-digit bookings and near double-digit earnings growth, demonstrating robust performance in a low-interest-rate environment and signaling future growth potential.
- Honeywell's Spin-Off Plans: As Honeywell approaches its split into aerospace and automation businesses, market recognition of its value is increasing, particularly for the security automation segment, which could benefit from lower rates, driving the stock price recovery from the $190s last year.
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See More
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- Order Boom: Demand for GE Vernova's gas turbine equipment is surging, with backlog expected to reach $150 billion by year-end, as customers are willing to pay upfront to secure future production slots, indicating a strong thirst for power in data centers.
- Industry Signals: The stock's rise is also attributed to positive earnings reports from companies like Vertiv and Aehr Test Systems, suggesting investor optimism about future demand for GE Vernova's products, especially in the early cycle of data center construction.
- Market Outlook: Aehr Test Systems' lead customer has placed an order for next-generation high-power AI processor testing equipment, further indicating sustained demand for GE Vernova's gas turbines, which are critical for future data center operations.
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See More
AI Drives Exponential Growth in Capital Expenditure
- Surge in Capital Expenditure: Top hyperscalers are expected to increase capital expenditures by 70% this year, with Amazon, Alphabet, Meta, and Microsoft planning a combined spending of over $600 billion, indicating a strong commitment to AI infrastructure investment.
- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
- Infrastructure Investment Opportunities: With spending accelerating, investors are drawn to
See More
Wall Street Market Dynamics Recap
- Market Dynamics: Wall Street experienced a decline on Thursday, particularly after the conclusion of the Morning Meeting, as the rotation from technology stocks to cyclicals continued, with industrials showing strong performance and driving portfolio results, indicating resilience in cyclical sectors.
- Stock Performance: Companies like Dupont, Dover, Honeywell, Linde, GE Vernova, and Eaton have shown extraordinary year-to-date performance, even as the S&P 500 has only seen slight gains, highlighting the significance of these cyclical stocks in the current market environment.
- Cisco Earnings Impact: Cisco's earnings report on Wednesday, despite a networking order growth exceeding 20%, saw shares drop over 10% on Thursday due to a dip in gross margins from rising memory prices, reflecting market concerns over its profitability.
- Apple Developments: Apple's shares fell more than 3% on Thursday, influenced by Cisco's warnings, and although iPhone sales remain strong, issues with the Siri upgrade testing and a delayed full launch could impact future market performance.
See More
Market Dynamics and Investment Opportunities Analysis
- Industrial Stock Rally: In 2026, industrial stocks like DuPont have shown remarkable performance, with DuPont up approximately 28% year-to-date, reflecting market confidence in industrial recovery; JPMorgan raised its price target from $50 to $57, indicating optimism about future growth.
- Cisco's Decline: Despite reporting strong quarterly results and raising its annual outlook, Cisco's stock fell about 7% in pre-market trading due to high memory prices squeezing gross margins, highlighting market concerns over its future profitability, prompting us to trim our position ahead of the report to mitigate risk.
- AI Market Funding: Anthropic is set to close a $20 billion funding round, valuing the company at $350 billion, which is crucial for the AI sector as it supports cloud providers' infrastructure investments, ensuring sustained compute demand that drives growth in related industries.
- Rising Power Demand: American Electric Power reported better-than-expected fourth-quarter results, having signed agreements for 28 GW of load capacity since October, bringing total energy commitments to 56 GW by 2030, demonstrating a strong response to high electricity demand, with over 10 GW of gas turbine capacity secured from major manufacturers like GE.
See More
Cyclical Stocks Show Strong Performance Amid Market Shifts
- DuPont Restructuring: DuPont's split into Qnity Electronics and the new DuPont, focusing on healthcare and water, has shown strong quarterly results, indicating significant progress in its transformation and potential to enhance market competitiveness.
- Dover's Performance Surge: Dover's investments in industrial sectors have resulted in double-digit bookings and near double-digit earnings growth, demonstrating robust performance in a low-interest-rate environment and signaling future growth potential.
- Honeywell's Spin-Off Plans: As Honeywell approaches its split into aerospace and automation businesses, market recognition of its value is increasing, particularly for the security automation segment, which could benefit from lower rates, driving the stock price recovery from the $190s last year.
- Eaton and GE Vernova Price Target Increases: Eaton and GE Vernova's price targets have been raised from $410 and $800 to $425 and $875 respectively, reflecting strong market expectations for data center demand, despite both companies having other business developments.
See More
GE Vernova Shares Surge on Strengthened AI Infrastructure Demand
- Stock Surge: As of 3:30 p.m. today, GE Vernova shares rose by 5.3%, reflecting increased market confidence in AI infrastructure stocks, particularly amid rising data center expenditures.
- Order Boom: Demand for GE Vernova's gas turbine equipment is surging, with backlog expected to reach $150 billion by year-end, as customers are willing to pay upfront to secure future production slots, indicating a strong thirst for power in data centers.
- Industry Signals: The stock's rise is also attributed to positive earnings reports from companies like Vertiv and Aehr Test Systems, suggesting investor optimism about future demand for GE Vernova's products, especially in the early cycle of data center construction.
- Market Outlook: Aehr Test Systems' lead customer has placed an order for next-generation high-power AI processor testing equipment, further indicating sustained demand for GE Vernova's gas turbines, which are critical for future data center operations.
See More
Surge in Options Trading Volume for ACMR and ALDX
- ACMR Options Volume: ACM Research Inc (ACMR) has seen an options trading volume of 8,259 contracts today, representing approximately 825,900 shares, which is about 53.7% of its average daily trading volume of 1.5 million shares over the past month, indicating heightened market interest in its future performance.
- High Frequency Trading: Within ACMR, the $80 strike call option has been particularly active, with 2,496 contracts traded today, equating to approximately 249,600 shares, suggesting strong bullish sentiment among investors at this price level.
- ALDX Options Activity: Concurrently, Aldeyra Therapeutics Inc (ALDX) has recorded an options trading volume of 4,196 contracts, representing around 419,600 shares, which is approximately 53.3% of its average daily trading volume of 787,615 shares over the past month, reflecting investor interest in its stock.
- ALDX High Frequency Trading: For ALDX, the $4 strike put option has seen a trading volume of 2,473 contracts, approximately 247,300 shares, indicating bearish sentiment in the market, possibly linked to uncertainties surrounding the company's future.
See More
