Trump Administration Pushes Tech Giants to Fund New Power Plants
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: NASDAQ.COM
- Power Infrastructure Growth: GE Vernova's gas power orders surged 50% year-over-year in Q3, with equipment orders doubling, indicating robust demand for its gas turbines and grid solutions, which is expected to enhance the company's market share further.
- Policy Impact Analysis: The Trump administration's initiative to make tech giants fund new power plants through emergency auctions is projected to support approximately $15 billion in new plant construction, aimed at stabilizing household electricity prices, potentially benefiting GE Vernova's order flow.
- Order and Revenue Outlook: GE Vernova currently holds 33 gigawatts of firm orders and 29 gigawatts in slot reservation agreements, with customers paying to secure manufacturing line spots, reflecting a trend of demand outpacing supply, allowing the company to charge higher prices for future orders.
- Service Revenue Stability: In Q3, GE Vernova reported $1.74 billion in power equipment revenue and $3 billion from power services, with a total remaining performance obligation of $81.2 billion in services, ensuring long-term revenue visibility and stability for the company.
Analyst Views on GEV
Wall Street analysts forecast GEV stock price to rise 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: 684.860
Low
475.00
Averages
769.15
High
1000.00
Current: 684.860
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.
