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
24 Analyst Rating
20 Buy
4 Hold
0 Sell
Strong Buy
Current: 982.350
Low
714.00
Averages
858.23
High
1087
Current: 982.350
Low
714.00
Averages
858.23
High
1087
About GEV
GE Vernova Inc. is engaged in the electric power industry, with products and services that generate, transfer, orchestrate, convert, and store electricity. 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. The 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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- Legislative Support: Last year, the Swedish parliament passed legislation to finance a new generation of reactors, the first to be built in Sweden in over 40 years, which the government views as essential for achieving net zero emissions by 2045.
- Project Scale: Vattenfall plans to order either five BWRX-300 reactors from GE Vernova or three Rolls-Royce SMRs through its Videberg Kraft venture by August 2025, providing a total output of approximately 1,500 MW, significantly boosting power supply capacity.
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- Strengths of Alphabet and Apple: Alphabet is positioned advantageously in the AI era with its YouTube and Waymo businesses, while Apple leverages its ecosystem of over 2.5 billion iPhone users to strengthen its AI partnership with Alphabet, showcasing both companies' robust market positions.
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See More
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- Nuclear Cooperation Agreement: Swedish utility Vattenfall has selected Britain's Rolls-Royce SMR to supply small modular reactors, marking a significant advancement in Sweden's nuclear energy sector and expected to enhance national energy security.
- Legislative Support: Last year, the Swedish parliament passed legislation to finance a new generation of reactors, the first to be built in Sweden in over 40 years, which the government views as essential for achieving net zero emissions by 2045.
- Project Scale: Vattenfall plans to order either five BWRX-300 reactors from GE Vernova or three Rolls-Royce SMRs through its Videberg Kraft venture by August 2025, providing a total output of approximately 1,500 MW, significantly boosting power supply capacity.
- Energy Transition Strategy: This initiative not only aids Sweden in achieving its energy transition goals but also promotes the synergistic development of renewable energy and nuclear power, ensuring the stability and sustainability of future energy supplies.
See More
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- Portfolio Analysis: During the June Monthly Meeting, Jim Cramer and Jeff Marks provided an in-depth analysis of 35 portfolio stocks, highlighting their preference for Intel due to its significant upside potential in data center CPU growth, particularly in the context of competition with TSMC.
- Tech Giants Restructuring: Cramer noted a reordering of the 'Magnificent Seven,' with newcomers like SpaceX and the yet-to-go-public Anthropic and OpenAI emerging as formidable competitors, indicating intensified market competition, especially in the AI sector.
- Strengths of Alphabet and Apple: Alphabet is positioned advantageously in the AI era with its YouTube and Waymo businesses, while Apple leverages its ecosystem of over 2.5 billion iPhone users to strengthen its AI partnership with Alphabet, showcasing both companies' robust market positions.
- Market Dynamics and Investment Strategy: Despite challenges faced by Meta and Microsoft, Cramer advises maintaining investments in Amazon and Nvidia, believing that the latter's GPU demand will continue to grow, and that Amazon's cloud business remains highly profitable.
See More
Latest Wall Street Ratings Overview
- GE Vernova Rating: Bernstein initiates GE Vernova as outperform, citing the potential for U.S. natural gas to displace coal globally, thereby reducing electricity costs and providing reliable power, which could drive the stock price higher.
- NeoVolta Buy Rating: Needham initiates coverage on NeoVolta with a Buy rating and an $8 price target, indicating significant upside potential for the battery company, reflecting strong market demand for its products.
- Nvidia Outlook: Bernstein reiterates Nvidia as outperform, emphasizing the enormous and still early data center market opportunity, suggesting that the company's leadership in technology will continue to drive stock price growth.
- Allegiant Acquisition Boost: Goldman Sachs reinstates Allegiant as a Buy with a $125 price target, believing that the acquisition of Sun Country will provide incremental profitable growth opportunities, enhancing the company's competitive position in the market.
See More
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- GE Vernova Performance Surge: In Q1 2026, GE Vernova reported a 16% revenue increase to $9.34 billion, with net income soaring from $264 million to $4.75 billion, primarily due to a one-time gain of $4.5 billion from acquiring the remaining 50% stake in Prolec GE, highlighting strong demand in the power supply sector.
- Order Boom: The grid business of GE Vernova saw an 86% increase in orders, securing $2.4 billion in data center equipment orders in a single quarter, surpassing the total for fiscal 2025, indicating accelerated demand driven by data center construction.
- Vertiv's Market Edge: Vertiv's revenue climbed 30% in Q1 2026 to approximately $2.65 billion, with net income rising from $164.5 million to $390 million, showcasing its competitive position in high-density data center cooling systems, particularly through its partnership with Nvidia.
- Future Growth Outlook: Vertiv anticipates full-year 2026 revenue between $13.5 billion and $14 billion, reflecting a year-over-year growth rate of 29% to 31%, although it faces risks from potential slowdowns in hyperscaler data center spending, its collaboration with Nvidia provides a replicable global market blueprint.
See More
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- Power and Cooling Demand: GE Vernova and Vertiv provide essential electricity and cooling for AI, with GE Vernova reporting a 16% revenue increase to $9.34 billion in Q1 2026, indicating strong confidence in power demand.
- Significant Order Growth: GE Vernova's grid business secured $2.4 billion in data center equipment orders in a single quarter, with an 86% growth rate, highlighting accelerated demand driven by data center construction.
- Vertiv's Market Advantage: Vertiv's collaboration with Nvidia has led to efficient cooling systems, with Q1 2026 revenue rising 30% to $2.65 billion and net income increasing from $164.5 million to $390 million year-over-year, showcasing its competitive edge in high-density data centers.
- Optimistic Future Outlook: Both companies raised their full-year revenue guidance, with GE Vernova expecting $44.5 billion to $45.5 billion and Vertiv forecasting $13.5 billion to $14 billion, reflecting a positive outlook on future market demand.
See More
Venezuela Signs Power Grid Agreement with GE Vernova
- Grid Restoration Initiative: Venezuela's government signed a memorandum of understanding with GE Vernova and state utility Corpoelec to restore 1,000 MW of generating capacity within 24 months and over 5,000 MW in 4-5 years, aiming to stabilize the national power grid and improve electricity supply.
- Legal Reform Context: The MoU comes shortly after the National Assembly approved reforms to the electricity law, allowing foreign investment in the sector after 15 years of state monopoly, marking a significant shift in the electricity market.
- System Audit Findings: GE Vernova's technical teams conducted a six-week audit confirming the deteriorated condition of Corpoelec's facilities, which have led to electricity rationing and widespread blackouts, particularly in Zulia, a key oil and agricultural region in Venezuela.
- Enhancing Energy Independence: GE Vernova's equipment is expected to help restore local thermoelectric generation capacity, reducing pressure on the Guri hydroelectric plant, which supplies about 70% of the country's electricity, thereby improving energy independence for central and western regions.
See More
