AI electricity demand detonates valuation! GE Vernova (GEV.US)'s stock price reached a record high: won the Wall Street Ensemble Song Tak Komo to watch for $1,000!

The Zhitong Finance App learned that on Wednesday, GE Vernova (GEV.US) stock price led the S&P 500 index. It hit a record high of 731 US dollars during the intraday period, and finally closed up as high as 15.62% to 723 US dollars. Earlier, the company announced that it would double dividends, increase share repurchase authorizations, issue 2026 financial guidance, and raise profit guidance, which indicates that demand for new natural gas power generation will remain strong in the next few years. Thanks to the news, several Wall Street investment banks also expressed bullish views.

GE Vernova is benefiting from a surge in electricity demand in the US, mainly driven by data centers, artificial intelligence, and the overall electrification of the economy. Shares of the company, which spun off from General Electric in early 2024, have more than doubled since this year.

GE Vernova said that by 2028, revenue is expected to reach 52 billion US dollars, and the compound annual growth rate will reach low double digits, higher than the previous forecast of 45 billion US dollars (high single-digit growth rate), while increasing its adjusted EBITDA margin for the period from 14% to 20%. The company believes it is in a good position to grasp the growing demand for electricity. GE Vernova CEO Scott Strazik said at the company's Investor Day event that an 80 GW combined cycle gas turbine contract is expected to be signed by the end of the year.

In recent months, concerns about the AI bubble and its impact on the energy industry have disrupted the stock prices of technology and power companies. Strazik dismissed these concerns with GE Vernova's guidance. Strazik said he doesn't think there's any bubble in the tech or power industry. He said that the fourth quarter of this year will be the quarter with the company's highest sales to hyperscale data center vendors. He believes sales will grow further next year, and “the scale will definitely continue to expand.”

Affected by this positive news, J.P. Morgan analyst Mark Strouse raised GE Vernova's target price to $1,000, the highest level on Wall Street. He said the company's electricity order activity “significantly exceeded expectations” and that the company was experimenting with higher pricing with every transaction.

Oppenheimer raised GE Vernova's rating from “holding” to “outperforming the market,” with a target price of $855. Analyst Colin Rusch said he believes the company has the potential to become a “major technology partner” for artificial intelligence hyperscale data centers. As data centers move towards higher voltage architectures and grid capacity remains limited, the company will continue to gain market share and pricing power.

UBS raised its price target from $760 to $835 and maintained a “buy” rating. UBS analyst Amit Mehrotra wrote that GE Vernova's goals were “very optimistic” and “above expectations,” adding that the company “has always performed well in achieving its goals, so we think these predictions are positive for the final actual results.” UBS indicated that GE Vernova's long-term performance guidance may be too conservative, particularly in the power business.

Meanwhile, William Blair reaffirmed its “outperforming the market” rating and endorsed the company's revised 2028 results guidance, although still conservative. The bank pointed out that GE Vernova performed well in all aspects of expectations in its presentation, including raising the 2028 guidance, which William Blair still believes is conservative. The bank continues to view GE Vernova as a leader in energy and power infrastructure, which the agency sees as the most important component of the AI theme.

Wolfe Research maintained its “on par with the market” rating, stating that the company's 2026 performance guidance and updated “until 2028” target both exceeded previously high expectations. The bank said the new target should be viewed as “more realistic, with less potential to overperform by 2028”, although the agency acknowledged that there are still upside opportunities, particularly in terms of pricing and VC productivity.

Additionally, RBC Capital Markets also upgraded the company's stock rating from “in line with the industry” to “outperforming the market” on the grounds that its updated outlook is stronger than expected and there are more opportunities for growth and profit margins to improve.

BMO Capital also raised the target price to $780, indicating that GE Vernova's financial update exceeded expectations, and the implied EBITDA forecast for 2028 was US$10.4 billion. These updates reflect GE Vernova's strong financial position and strategic growth plans, as highlighted in a recent investor update.

Jefferies analysts also said that GE Vernova's forecast “far exceeded expectations in terms of profit margin, EBITDA, and free cash flow,” and pointed out that the company's 2026 free cash flow outlook was “uniquely constructive” and that the profit margin of the electrification business was above 20%.