Key insights
- GE Vernova (GEV) stock is surging after a strong Q1 earnings report, driven by increased demand for power infrastructure related to AI data centers. Revenue is up 16%, with power revenue boosted by transformer sales and gas turbine demand. While wind revenue is down, overall growth is strong enough for the company to raise its full-year forecast. The company's backlog suggests sustained demand for its products, even if data center construction slows.
GE Vernova (GEV) stock is surging on Wednesday after beating first quarter earnings estimates.
Morning Brief Host Julie Hyman and Yahoo Finance Head of News Myles Udland dive into the energy company's quarterly results amid the latest forecasts for AI data center demands.
I I want to talk to you about GE Vernova.
There you go.
Right? Um, because, and I've talked to, you know, I've I've interviewed the CEO Scott Strazik a number of times. I think the company's really interesting because what we talk about all the time is the power bottleneck um for the data center and AI build out. And these guys are the suppliers for that.
I mean, there was so much talk for a while about the the so-called picks and shovels um trade within AI. and and it's still working, right? I mean, GE is 52% this year. It doubled last year, right? After the GE split up here.
This is it.
Look at this thing.
And the company's um results, revenue overall up 16%, power revenue is up because they're selling more transformers, not just for data centers, but for everything. They bought a company called Prolec that um is in that business. Um, that's in their electrification um business. They sell gas turbines which everybody wants and are on back order.
The wind revenue, as you might imagine, is the weak spot. It was down 23% and that's because President Trump doesn't like wind and so we've seen a hit to the wind industry.
But the the growth elsewhere is more than making up for it and so now the company is raising its forecast uh for the full year. It's talking about its backlog um of equipment. That's something that analysts are pointing to. And so, you know, even if you're talking about, oh, there might not be as many data centers built this year as anticipated, their backlog is already so, I mean, they've got orders out for several years.
And so, even if those some of those don't get built this year, they'll get built the following year and the year after that, it seems like.
Yeah, I mean, you know, there was a chart yesterday from uh the BlackRock Investment Institute on uh Hyperscalar CAPEX consensus estimates comparing October last year to April. For this year, they're up 30%. For 27, up 30%, 28 up 34%, 29 up and like, where's that money going?
Well, it's going to chips, it's going to Nvidia, but it's also going to GE Vernova. And so, you know, to your point about like the concern of, well this thing isn't getting built. Every company along the chain here is still seeing orders placed for equipment that will eventually get built.
Um and it it speaks to that AI vibe shift that we talked about last week where there's maybe questions about the models and the whole labor market, fatalism, all this kind of stuff. What isn't really in question right now, like on a market level basis, um is whether you are going to see companies continue to order against, spend against the opportunity, and even if there are delays, try to get these projects done.
Um, one quick note, another company in this space is Vertive which does also does um supplying for electrical components and cooling components. Those shares are down,
but they've risen 93% just so far in 2026, and it looks like they're pushing some of their numbers into the back half. So their numbers missed for the last quarter, but they um raised their forecast for the full year.
Stock's up 1300% in the last five years.
There you go.
There you go.
Who cares about a two% Exactly. All right.