Global power industry leader GEV, the winner in the era of AI!

In the Niuniu Classroom, we have written aboutinvestment opportunities in nuclear power stocks >>The core idea is that in the next 3-5 years, the nuclear power industry is likely to solve the electricity challenges posed by AI, becoming a decisive factor in the AI industry chain, and related concept stocks are also becoming potential targets worth observing.

This week, we have selected an electrical and power equipment stock -- $GE Vernova(GEV.US)$ As a leader in the global power industry, GEV has seen its stock price rise fivefold since its listing in 2024, showcasing exceptional performance. So, what is GEV's background? What competitive advantages does it hold? Is it worth tracking in the long term?

The Background of GEV

$GE Vernova(GEV.US)$ It is not an obscure player; its predecessor was the energy division of General Electric, which spun off and became an independent company in 2024.

In fact, GEV has over 130 years of technological accumulation, not only possessing the largest installed capacity of gas turbines globally but also around 55,000 wind turbines operating worldwide, making it a 'super giant' in the energy sector. One can imagine that for every three kilowatt-hours of electricity consumed globally, one kilowatt-hour comes from equipment supplied by GE Vernova!

Winners of the Power Industry in the AI Era

$GE Vernova(GEV.US)$ Its business landscape resembles a complete energy ecosystem, primarily divided into three major components: electricity + wind energy + electrification.

In the power generation sector, GEV provides efficient natural gas power generation solutions, which also include nuclear, hydroelectric, and steam technologies; in the wind power sector, there are layouts for both onshore and offshore wind power; the electrification business is responsible for intelligently delivering the produced electricity to where it is needed. These three major businesses complement each other, akin to a 'production-transportation-sales' one-stop service in the power sector!

Of course, the greatest contributor to GEV's achievements is the power demand driven by AI. With the explosive growth of AI technology, the demand for electricity in data centers has surged dramatically. These 'power-hungry monsters' require reliable, efficient, and sustainable power solutions, which is exactly GEV's forte.

Company CEO Scott Strazik stated: 'The demand from AI data centers has led to robust growth in our natural gas power generation business, and this momentum will continue beyond 2025!' To this end, the company has actively taken steps, collaborating with NRG Energy to develop power generation projects specifically for AI services, with a total capacity exceeding 5 GW.

Currently, GE Vernova invests approximately $1 billion annually in R&D, continuously promoting innovation in energy technology. In July this year, they also acquired the French artificial intelligence company Alteia, making the power grid 'smarter', akin to equipping the traditional grid with an 'AI brain', capable of intelligently allocating power resources. In the nuclear power sector, the company is also actively establishing its presence; to achieve the zero-carbon target by 2050, global nuclear power installed capacity will need to more than double by that year, and GE Vernova has already begun investing resources to reserve nuclear technology.

Impressive Financial Report Data

According to the latest performance data, in Q2 2025, GEV's revenue was $9.1 billion, with a quarter-on-quarter growth rate of 13% and a year-on-year growth of 11%. This is mainly due to the company's robust order growth in both equipment and services, with a simultaneous increase in backlogged orders, driving revenue growth.

In terms of business segmentation, the power sector is currently the core business of GE Vernova, accounting for over 50% of revenue and boasting the highest profit margin!

According to Q2 data, the power business showed strong order performance, including 20 large heavy-duty gas turbines (an increase of 6 units compared to the same period last year) and 27 aviation-derived units (an increase of 26 units compared to the same period last year). Benefiting from the increased delivery of HA units and the continued robustness of service operations, the power business generated revenue of $4.76 billion, up 7% year-on-year and 8% quarter-on-quarter. The EBITDA margin for Q2 even improved to 16.4%, maintaining the lead among the three major business segments.

In the wind energy sector, Q2 revenue reached $2.25 billion, marking a 9% year-on-year increase and a 21% quarter-on-quarter increase.

The revenue growth was primarily driven by an increase in onshore wind power shipments; however, due to rising service costs for onshore wind power and tariff impacts on offshore wind power, the EBITDA loss in the wind energy business expanded, reaching a loss rate of 7.3%.

In the electrification business, Q2 revenue was boosted by sustained demand for grid equipment and solutions, particularly in the areas of high-voltage direct current (HVDC), switchgear, and transformers, achieving $2.2 billion in revenue, a remarkable 23% year-on-year increase and a 17% quarter-on-quarter increase.

Thanks to increased shipments and productivity improvements, the EBITDA margin for the electrification business expanded to 14.6%, achieving a doubling compared to the same period in 2024.

In summary, in the AI-driven new era, GE Vernova is not only a provider of electricity but also a shaper of the future energy landscape. It has mature solutions in the fields of power, wind energy, and electrification, and operates steadily, with both revenue and profit margins continuing to grow. With the anticipated increase in future power demand, GEV will be one of the direct beneficiaries, warranting continued attention from investors.

Technical Analysis

From a technical perspective, trading opportunities are determined. $GE Vernova(GEV.US)$ Since its listing in 2024, it has been in a strong upward trend, with a maximum increase of over five times. At the beginning of 2025, there was a brief pullback of approximately 60%, after which it returned to an upward trend, rising from over $260 to a peak of $677.

If we examine the latest closing price of $577 in relation to the EMA12 and the 50-day moving average, it has already fallen below the EMA50 line. If the adjustment continues over the next few trading days, and the EMA12 crosses below the 50-day moving average, it will further confirm the downward trend of GEV. Additionally, the increasing trading volume during recent declines indicates heavy selling pressure, which may continue to stimulate a price pullback. Conversely, if the adjustment stabilizes around the EMA50 line (near $584), the stock price may find short-term support, increasing the likelihood of a bullish trend in the future.

In summary, GEV's current price level is quite sensitive, and the trend is unclear, necessitating cautious attention to the critical level of the EMA50 moving average. Given that the broader U.S. stock market is still experiencing fluctuations, investors should exercise caution in their operations.

Risk Disclosure: This content does not constitute a research report and is for reference only. It should not be used as the basis for any investment decision. The information provided herein is not a comprehensive description of the securities, markets, or developments mentioned. Although the sources of the information are believed to be reliable, the accuracy or completeness of the content is not guaranteed. Additionally, no assurance is given as to the accuracy of any statements, views, or forecasts provided in this document.