Ever wondered what happens when a century-old industrial giant gets a modern makeover and rides the wave of a tech revolution? That’s the story of GE Vernova, a company that’s not just keeping up with the times but soaring to the top of the stock market. Born from General Electric’s bold decision to split into three focused entities, Vernova has tapped into the artificial intelligence boom, capitalizing on the surging energy demands of data centers. In my view, it’s a fascinating case of old-school industry meeting cutting-edge innovation, and the numbers back it up—Vernova’s stock has more than quadrupled since its debut. Let’s unpack how this spinoff is rewriting the energy playbook and why Wall Street thinks the best is yet to come.
The AI-Powered Energy Revolution
The rise of AI is reshaping industries, but one often-overlooked aspect is its insatiable hunger for electricity. Data centers, the backbone of AI, are guzzling power at an unprecedented rate. This isn’t just a tech story—it’s an energy story. Vernova, spun off from GE in April 2024, was built to seize this moment. With a portfolio spanning gas turbines, nuclear power, and grid equipment, the company is perfectly positioned to meet the electrification surge driven by AI. Analysts are buzzing, and for good reason: Vernova’s stock has climbed nearly 90% in 2025 alone, making it one of the S&P 500’s top performers.
Power demand today is the strongest since World War II. The world needs more energy, and electricity’s share is only growing.
– Industry executive
This isn’t just hype. The numbers paint a clear picture. Vernova’s cash reserves have doubled to $8 billion since the spinoff, with projections to hit $14 billion by 2028. Revenue is expected to jump from $35 billion in 2024 to $45 billion in the same timeframe—a 30% leap. I find it remarkable how a company rooted in traditional energy is thriving in a tech-driven world. But what’s driving this growth? Let’s break it down.
Gas Turbines: The Heart of the Boom
Vernova’s gas power business is firing on all cylinders. As utilities scramble to meet rising electricity needs, gas turbines are in high demand. Vernova’s order backlog for these turbines hit 55 gigawatts by mid-2025, with orders nearly tripling in the second quarter compared to the previous year. The company is sold out through 2028, and it’s not slowing down. Plans are in place to ramp up production to 80 heavy-duty turbines annually by late 2026, up from 48 in 2024.
Why the frenzy? Data centers need reliable, scalable power, and gas turbines deliver. Prices are climbing too—industry reports suggest the cost of building new gas plants has tripled since 2022, now averaging $2,400 per kilowatt. For Vernova, this translates to fatter margins and a robust revenue stream. About 70% of its gas business revenue comes from servicing over 7,000 turbines worldwide. As utilities upgrade existing units to squeeze out more power, Vernova’s service backlog has ballooned to $56 billion.
- Surging demand: Gas turbine orders nearly tripled in Q2 2025.
- Production boost: Vernova aims to produce 80 turbines annually by 2026.
- Service revenue: $56 billion backlog from turbine maintenance.
I can’t help but think this is a textbook case of being in the right place at the right time. Vernova’s gas business isn’t just growing—it’s dominating. But it’s not the only piece of the puzzle.
Grid Equipment: The Unsung Hero
While gas turbines grab headlines, Vernova’s grid equipment business is quietly stealing the show. Transformers, switchgears, and other critical infrastructure are sold out through 2028, with a $24 billion backlog that’s up 40% from last year. Data centers are driving this surge, booking $500 million in orders in the first half of 2025 alone—compared to $600 million for all of 2024. Projections suggest at least $1 billion in data center orders by year-end.
It’s easy to overlook gear like transformers, but they’re the backbone of modern power grids. Without them, AI data centers would grind to a halt. Vernova’s ability to deliver these components at scale gives it a competitive edge. Analysts point out that the U.S. is still early in its AI infrastructure buildout, meaning this demand could persist for years. To me, this feels like a hidden gem in Vernova’s portfolio—one that’s just starting to shine.
Nuclear Power: The Next Frontier
Looking further ahead, Vernova is betting big on nuclear power. Tech giants are pouring money into nuclear to meet data center demands, from reopening shuttered plants to developing advanced small modular reactors (SMRs). Vernova is already positioned to capitalize, with 65 U.S. plants using its technology. Upgrades and potential restarts could add five gigawatts of capacity this decade.
Nuclear will play a bigger role in the 2030s, especially for tech-driven energy needs.
– Energy industry leader
Vernova’s BWRX-300 SMR design is a game-changer. With one plant under construction in Canada and another planned in Tennessee, the company aims to generate $2 billion annually from SMRs by the mid-2030s. This isn’t just about meeting demand—it’s about redefining how we think about nuclear energy. I’m particularly excited about this long-term play; it’s a bold move that could cement Vernova’s leadership in the energy transition.
| Energy Segment | 2025 Backlog | Future Potential |
| Gas Turbines | 55 GW | $56B in service revenue |
| Grid Equipment | $24B | $1B+ in data center orders |
| Nuclear Power | 5 GW (projected) | $2B annual SMR revenue by 2030s |
Wind Power: A Rough Patch
Not everything is smooth sailing. Vernova’s wind power segment is struggling, posting a $588 million loss in 2024. High interest rates, supply chain issues, and policy uncertainty—particularly around renewable energy incentives—have taken a toll. Offshore wind projects, like those off Massachusetts and England, have faced costly delays due to turbine blade failures. The company plans to exit offshore wind once current projects wrap up, unless economics improve drastically.
Onshore wind isn’t faring much better, with potential revenue declines of up to 15% in 2026 if demand stays soft. Political shifts have added uncertainty, with permitting challenges and tariff concerns clouding the outlook. Still, Vernova’s massive installed base of 57,000 turbines globally offers some stability. It’s a tough spot, but I suspect the company’s pivot to gas and nuclear will more than offset these headwinds.
Why Wall Street Is Bullish
Despite the wind challenges, Wall Street remains overwhelmingly optimistic. Analysts rate Vernova a buy, with an average price target of $686.68—about 10% above its recent close. Some even see it climbing to $740, an 18% upside. The reasoning is simple: the AI-driven energy supercycle is just beginning. Vernova’s deep pockets, robust backlog, and diversified portfolio make it a prime beneficiary.
- Early-stage growth: The U.S. AI data center buildout is still in its infancy.
- Financial strength: $8 billion in cash, with a path to $14 billion by 2028.
- Diversified revenue: Gas, nuclear, and grid segments offset wind struggles.
From my perspective, Vernova’s ability to balance short-term wins with long-term bets is what sets it apart. The company isn’t just riding the AI wave—it’s building the infrastructure to sustain it. Could there be bumps along the way? Sure. But the fundamentals suggest this stock has plenty of room to run.
What’s Next for Vernova?
Looking ahead, Vernova’s trajectory seems tied to the broader energy transition. AI isn’t slowing down, and neither is the demand for reliable power. The company’s focus on scaling gas turbine production, expanding grid equipment, and pioneering nuclear solutions positions it as a leader in this space. But questions linger: Can Vernova navigate the wind segment’s challenges? Will nuclear live up to its promise? Only time will tell, but the early signs are promising.
In my experience, companies that adapt to seismic shifts—like the AI-driven energy boom—tend to thrive. Vernova’s story is a reminder that even traditional industries can find new life in a tech-driven world. For investors, it’s a compelling case to watch closely. As the energy landscape evolves, Vernova seems poised to power the future—one turbine, one reactor, one grid at a time.
