Key insights
- Barclays forecasts AI infrastructure spending to exceed $1 trillion annually by 2028, significantly above current estimates. This surge is expected to drive substantial demand for power generation capacity. Companies like GE Vernova, Caterpillar, Howmet Aerospace, and Cummins, which manufacture essential gas power generation equipment, are identified as key beneficiaries. Their capacity expansions and strong financial performances position them to capitalize on this accelerating capex boom, potentially boosting their stock performance and related industrial sectors.
Investing.com -- Barclays has identified key gas power generation equipment companies positioned to benefit as artificial intelligence infrastructure spending accelerates.
The firm’s technology analysts project annual AI infrastructure spending from Western hyperscalers and AI labs could surpass $1 trillion before peaking in 2028, driving demand for power generation capacity.
This forecast represents more than $300 billion above current consensus estimates. The following companies manufacture essential equipment for digital and power infrastructure expansion.
- GE Vernova -- The company targets increasing turbine capacity from 16 gigawatts to 20 gigawatts by the third quarter of 2026 and 24 gigawatts by 2028.
GE Vernova announced a collaboration with Blue Energy to develop a power plant in Texas combining nuclear and natural gas generation. The company also signed a definitive agreement to acquire Robotech Automation, a Canadian robotics and automation systems integrator.
- Caterpillar -- The industrial manufacturer indicated plans to increase its Solar turbine and large engine capacity by 2.5 times and 2 times in 2030, respectively, versus 2024 levels.
Caterpillar reported first-quarter adjusted earnings per share that were 20% ahead of consensus estimates. Following the results, several firms, including Argus and BofA Securities, raised their price targets for the company.
- Howmet Aerospace -- The company manufactures complex turbine blades and castings for major gas turbine original equipment manufacturers.
Howmet Aerospace reported strong financial results for the first quarter of 2026, surpassing both revenue and earnings per share forecasts.
- Cummins -- The firm designs and manufactures natural gas-powered generator sets and engines for standby and prime power applications.
In recent developments, Cummins raised its 2030 financial targets for growth and profitability, citing stronger market positions and rising demand.
- Bloom Energy -- AEP executed an unconditional purchase agreement with Bloom to procure a substantial portion of its option to acquire 900 megawatts of fuel cells.
Bloom Energy announced an expanded partnership and a master services agreement with Oracle for up to 2.8 gigawatts of fuel cells. The company also raised its guidance for 2026 following quarterly results that exceeded expectations.
- FTAI Aviation -- The company converts CFM56 aircraft engines into 25-megawatt aeroderivative turbines, targeting more than 100 units annually.
FTAI Aviation reported a first-quarter 2026 revenue beat, though earnings per share missed forecasts. Additionally, Moody’s Ratings upgraded the company’s corporate family rating to Ba1 from Ba2, citing lower leverage.
- ATI Inc. -- The manufacturer produces technically advanced nickel alloys and zirconium used in land-based gas turbine hot sections.
For its first quarter of 2026, ATI Inc. reported earnings per share that surpassed analyst forecasts, while revenue came in below expectations.
- Generac -- The company has $400 million of backlog for its new diesel backup generators for data centers.
Generac Holdings reported first-quarter 2026 earnings that significantly surpassed expectations, with both earnings per share and revenue coming in above forecasts. Separately, Jefferies upgraded its rating on the company to Buy from Hold.
- Woodward Inc. -- The firm provides control solutions, including valves and actuators, specifically for gas and steam turbines.
In its second quarter of fiscal year 2026, Woodward Inc. reported record net sales of $1.1 billion and an earnings per share figure that surpassed analyst forecasts.
- Net Power -- The company develops technology to produce clean, reliable electricity from natural gas with carbon capture.
Net Power reported a first-quarter 2026 earnings per share miss, with results coming in below analyst expectations.
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Babcock & Wilcox -- Babcock provides equipment and services for power generation facilities, including gas-fired assets.
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Baker Hughes — Baker Hughes can sell aeroderivative turbines to the O&G industry and its proprietary NovaLT industrial turbines to all end-markets.
Barclays compiled a list of more than 400 companies it considers essential to digital and power infrastructure buildout. The analysis includes potential upside from sovereign AI initiatives and China before AI training needs decelerate due to recursive self-improvement.
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