Particle.news
Download on the App Store

GE Vernova’s Outlook Debated as Analysts Split on AI-Driven Demand Versus Broader Recovery

Investor skepticism centers on how dependent the company’s near-term power-equipment upcycle is on AI data centers.

Overview

  • CEO Scott Strazik reiterated that artificial intelligence is a real growth driver for GE Vernova but not the only one supporting demand.
  • The company is guiding toward roughly $200 billion in total backlog by the end of 2028 from about $135 billion, alongside plans for higher margins and capital returns.
  • Recent Wall Street moves diverged: Citi lifted its price target to $708 with a Neutral rating, Robert W. Baird cut its target to $649 and downgraded to Neutral, and JPMorgan raised its target to $1,000 with a Buy rating.
  • GE Vernova reported third-quarter revenue just under $10 billion, up 12% year over year, with grid and electrification backlog at about $26 billion and gas turbine backlog rising to 62 gigawatts.
  • Television host Jim Cramer voiced continued support for the stock, highlighting the company’s gas and nuclear businesses and progress tied to the Darlington project.