GE Vernova and Vertiv: Power and Cooling Behind AI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- 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.
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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: 1048.860
Low
714.00
Averages
858.23
High
1087
Current: 1048.860
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.
GE Vernova Shares Rise on U.S.-Iran MOU Impact
- Stock Price Surge: GE Vernova shares rose by 6.5% in early trading, reflecting market optimism towards the U.S.-Iran memorandum of understanding, which alleviates regional uncertainty and supports large-scale capital investments in GE Vernova's gas power business.
- Reconstruction Investment Opportunities: The U.S. has pledged to collaborate with Gulf partners on a $300 billion reconstruction plan for Iran, which could lead to equipment orders for GE Vernova, especially given the damage to Iran's infrastructure from recent conflicts.
- Long-Term Growth Potential: The company's earnings are primarily driven by its higher-margin gas turbine services business, and securing orders for heavy-duty gas turbines will likely enhance Wall Street's expectations for long-term cash flow, positively impacting valuations.
- Slot Reservation Agreements: GE Vernova's strong order book allows it to sign slot reservation agreements (SRAs), where customers pay upfront to secure manufacturing slots for gas turbines, accelerating cash flow and strengthening the company's negotiating position.
See More
GE Vernova Releases 2025 Sustainability Report Highlighting Key Achievements
- New Generating Capacity: GE Vernova added 26 gigawatts of generating capacity in 2025, with nearly 47% deployed in developing economies, significantly improving electricity access and supporting economic growth, reflecting the company's strategic positioning in the global power market.
- Carbon Emission Reduction: The carbon intensity of new generating capacity was nearly 31% below the global average, while technologies deployed helped avoid an estimated 22 million metric tons of CO2 emissions, showcasing the company's proactive contributions to climate change mitigation.
- Greenhouse Gas Reduction: In 2025, GE Vernova reduced its Scope 1 and Scope 2 greenhouse gas emissions by 27% year-over-year and by 64% from 2019 levels, indicating the company's ongoing commitment and effectiveness in sustainability efforts.
- Circular Economy Initiatives: Currently, 53% of the company's major products are covered under the 4R framework (Rethink, Reduce, Reuse, Recycle), which not only enhances resource efficiency but also strengthens the company's competitive advantage in the transition to a green economy.
See More
Nuclear Energy to Support AI Infrastructure Demands
- Surging Power Demand: The International Energy Agency (IEA) forecasts that global electricity consumption for data centers will exceed 945 terawatt-hours (TWh) by 2030, doubling Japan's current annual consumption, highlighting the immense power requirements driven by AI infrastructure.
- BWX Technologies Overview: BWX Technologies focuses on manufacturing nuclear components, with government operations expected to generate $2.3 billion in revenue by 2025, underscoring its strong market position and stable revenue streams in the nuclear sector.
- Oklo Microreactor Design: Oklo is designing a microreactor called Aurora that can utilize nuclear waste as fuel and provide power in remote areas; although it has yet to receive commercialization certification, its technology holds potential to meet the electricity demands of AI data centers.
- Competitive Industry Pressure: Oklo faces competition from other energy companies, such as Bloom Energy, which is already deploying fuel cell systems to support AI; while its future remains uncertain, Oklo's technology could become a critical component of AI infrastructure if it receives approval from the Nuclear Regulatory Commission.
See More
Nuclear Companies Tackle AI Era Power Challenges
- Surging Power Demand: The International Energy Agency (IEA) forecasts that global electricity consumption for data centers will exceed 945 terawatt-hours (TWh) by 2030, doubling Japan's current annual consumption, necessitating a massive build-out of generating capacity to meet this demand.
- BWX Technologies' Market Position: BWX Technologies (BWXT), a manufacturer of nuclear and defense components, is projected to generate $2.3 billion from its government operations segment in 2025, highlighting its strong market position and technical moat in the nuclear sector, with a backlog of $8.6 billion as of March 2026 indicating future growth potential.
- Oklo's Innovative Potential: Oklo is designing a fast-fission microreactor called Aurora, which, while not yet commercialized, could meet the substantial electricity demands of data centers and can be deployed directly in rural areas, addressing infrastructure shortages.
- Intensifying Industry Competition: Despite Oklo's promising technology, it faces competition from other energy companies like Bloom Energy, which is already deploying fuel cell systems to support AI, making Oklo's future reliant on Nuclear Regulatory Commission certification and market acceptance.
See More
US Stocks Rise on US-Iran Peace Deal Optimism
- Market Rally: The S&P 500 rose 1.08%, the Dow Jones increased by 0.14%, and the Nasdaq 100 surged 2.48% as optimism over the US-Iran peace deal eased inflation risks, reflecting a positive market sentiment.
- Chip Sector Surge: Intel's stock jumped over 10% after President Trump announced a partnership with Apple to design and produce semiconductors domestically, leading the iShares Semiconductor ETF to rise more than 7%, indicating strong momentum in the tech sector.
- Energy Stocks Weaken: WTI crude oil prices fell to a 3.5-month low, causing significant declines in energy stocks, with SLB, ConocoPhillips, and Halliburton dropping over 3%, highlighting concerns over energy price volatility.
- Supportive Economic Data: Initial jobless claims fell to 226,000, close to the expected 225,000, indicating labor market strength, while the Philadelphia Fed business outlook index rose to 10.3, surpassing expectations, further boosting investor confidence.
See More
GE Vernova Positioned for $300 Billion Iran Reconstruction
- Positive Market Reaction: GE Vernova (NYSE: GEV) shares rose by 6.5% in early trading, reflecting market optimism towards the U.S.-Iran memorandum of understanding, which helps alleviate regional uncertainty and promotes large-scale capital investments.
- Reconstruction Investment Potential: The U.S. has pledged to collaborate with Gulf partners to invest $300 billion in Iran's reconstruction, a plan that could lead to equipment orders for GE Vernova, especially given the urgent need for rebuilding after infrastructure damage from attacks.
- Long-term Earnings Driver: The primary earnings driver for GE Vernova is its higher-margin gas turbine services business, and securing orders for heavy-duty gas turbines would lead Wall Street to anticipate increased long-term cash flow for the company, thereby enhancing its valuation.
- Order Slot Reservation Agreements: GE Vernova's strong order book allows it to sign slot reservation agreements (SRAs), where customers pay upfront to secure manufacturing slots for gas turbines; more deals from Iran will strengthen the company's negotiating position over SRAs, bringing cash flow forward.
See More
GE Vernova Shares Rise on U.S.-Iran MOU Impact
- Stock Price Surge: GE Vernova shares rose by 6.5% in early trading, reflecting market optimism towards the U.S.-Iran memorandum of understanding, which alleviates regional uncertainty and supports large-scale capital investments in GE Vernova's gas power business.
- Reconstruction Investment Opportunities: The U.S. has pledged to collaborate with Gulf partners on a $300 billion reconstruction plan for Iran, which could lead to equipment orders for GE Vernova, especially given the damage to Iran's infrastructure from recent conflicts.
- Long-Term Growth Potential: The company's earnings are primarily driven by its higher-margin gas turbine services business, and securing orders for heavy-duty gas turbines will likely enhance Wall Street's expectations for long-term cash flow, positively impacting valuations.
- Slot Reservation Agreements: GE Vernova's strong order book allows it to sign slot reservation agreements (SRAs), where customers pay upfront to secure manufacturing slots for gas turbines, accelerating cash flow and strengthening the company's negotiating position.
See More
GE Vernova Releases 2025 Sustainability Report Highlighting Key Achievements
- New Generating Capacity: GE Vernova added 26 gigawatts of generating capacity in 2025, with nearly 47% deployed in developing economies, significantly improving electricity access and supporting economic growth, reflecting the company's strategic positioning in the global power market.
- Carbon Emission Reduction: The carbon intensity of new generating capacity was nearly 31% below the global average, while technologies deployed helped avoid an estimated 22 million metric tons of CO2 emissions, showcasing the company's proactive contributions to climate change mitigation.
- Greenhouse Gas Reduction: In 2025, GE Vernova reduced its Scope 1 and Scope 2 greenhouse gas emissions by 27% year-over-year and by 64% from 2019 levels, indicating the company's ongoing commitment and effectiveness in sustainability efforts.
- Circular Economy Initiatives: Currently, 53% of the company's major products are covered under the 4R framework (Rethink, Reduce, Reuse, Recycle), which not only enhances resource efficiency but also strengthens the company's competitive advantage in the transition to a green economy.
See More
Nuclear Energy to Support AI Infrastructure Demands
- Surging Power Demand: The International Energy Agency (IEA) forecasts that global electricity consumption for data centers will exceed 945 terawatt-hours (TWh) by 2030, doubling Japan's current annual consumption, highlighting the immense power requirements driven by AI infrastructure.
- BWX Technologies Overview: BWX Technologies focuses on manufacturing nuclear components, with government operations expected to generate $2.3 billion in revenue by 2025, underscoring its strong market position and stable revenue streams in the nuclear sector.
- Oklo Microreactor Design: Oklo is designing a microreactor called Aurora that can utilize nuclear waste as fuel and provide power in remote areas; although it has yet to receive commercialization certification, its technology holds potential to meet the electricity demands of AI data centers.
- Competitive Industry Pressure: Oklo faces competition from other energy companies, such as Bloom Energy, which is already deploying fuel cell systems to support AI; while its future remains uncertain, Oklo's technology could become a critical component of AI infrastructure if it receives approval from the Nuclear Regulatory Commission.
See More
Nuclear Companies Tackle AI Era Power Challenges
- Surging Power Demand: The International Energy Agency (IEA) forecasts that global electricity consumption for data centers will exceed 945 terawatt-hours (TWh) by 2030, doubling Japan's current annual consumption, necessitating a massive build-out of generating capacity to meet this demand.
- BWX Technologies' Market Position: BWX Technologies (BWXT), a manufacturer of nuclear and defense components, is projected to generate $2.3 billion from its government operations segment in 2025, highlighting its strong market position and technical moat in the nuclear sector, with a backlog of $8.6 billion as of March 2026 indicating future growth potential.
- Oklo's Innovative Potential: Oklo is designing a fast-fission microreactor called Aurora, which, while not yet commercialized, could meet the substantial electricity demands of data centers and can be deployed directly in rural areas, addressing infrastructure shortages.
- Intensifying Industry Competition: Despite Oklo's promising technology, it faces competition from other energy companies like Bloom Energy, which is already deploying fuel cell systems to support AI, making Oklo's future reliant on Nuclear Regulatory Commission certification and market acceptance.
See More
US Stocks Rise on US-Iran Peace Deal Optimism
- Market Rally: The S&P 500 rose 1.08%, the Dow Jones increased by 0.14%, and the Nasdaq 100 surged 2.48% as optimism over the US-Iran peace deal eased inflation risks, reflecting a positive market sentiment.
- Chip Sector Surge: Intel's stock jumped over 10% after President Trump announced a partnership with Apple to design and produce semiconductors domestically, leading the iShares Semiconductor ETF to rise more than 7%, indicating strong momentum in the tech sector.
- Energy Stocks Weaken: WTI crude oil prices fell to a 3.5-month low, causing significant declines in energy stocks, with SLB, ConocoPhillips, and Halliburton dropping over 3%, highlighting concerns over energy price volatility.
- Supportive Economic Data: Initial jobless claims fell to 226,000, close to the expected 225,000, indicating labor market strength, while the Philadelphia Fed business outlook index rose to 10.3, surpassing expectations, further boosting investor confidence.
See More
GE Vernova Positioned for $300 Billion Iran Reconstruction
- Positive Market Reaction: GE Vernova (NYSE: GEV) shares rose by 6.5% in early trading, reflecting market optimism towards the U.S.-Iran memorandum of understanding, which helps alleviate regional uncertainty and promotes large-scale capital investments.
- Reconstruction Investment Potential: The U.S. has pledged to collaborate with Gulf partners to invest $300 billion in Iran's reconstruction, a plan that could lead to equipment orders for GE Vernova, especially given the urgent need for rebuilding after infrastructure damage from attacks.
- Long-term Earnings Driver: The primary earnings driver for GE Vernova is its higher-margin gas turbine services business, and securing orders for heavy-duty gas turbines would lead Wall Street to anticipate increased long-term cash flow for the company, thereby enhancing its valuation.
- Order Slot Reservation Agreements: GE Vernova's strong order book allows it to sign slot reservation agreements (SRAs), where customers pay upfront to secure manufacturing slots for gas turbines; more deals from Iran will strengthen the company's negotiating position over SRAs, bringing cash flow forward.
See More
