[Opportunity Express] Global power industry leader GEV, the winner in the era of AI!

In the Niu Niu classroom, we have written aboutInvestment Opportunities in Nuclear Power Stocks Article>

The core is that in the next 3-5 years, the nuclear power industry is likely to solve the electricity consumption problem of AI, becoming a decisive key in the AI industry chain, while related concept stocks have also become potential targets worth observing.

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

The Background of GEV

$GE Vernova (GEV.US)$ Not merely an unknown entity, it was formerly the power division of General Electric, which was spun off to become an independent company in 2024.

In fact, GEV has over 130 years of technological accumulation, boasting the largest installed capacity of gas turbines globally, along with approximately 55,000 wind turbines operating worldwide, thus earning the title of a "super giant" in the energy sector. It can be imagined that for every three kilowatt-hours of electricity produced in the world, one comes from equipment developed by GE Vernova!

Winners in the Power Sector of the AI Era

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

In the power generation sector, GEV provides efficient natural gas power generation solutions, as well as technologies for nuclear, hydro, and steam power; in the wind energy sector, it has deployed both onshore and offshore wind power; the electrification business is responsible for intelligently delivering the generated electricity to where it is needed. These three business segments complement each other, akin to a "production-transportation-sales" one-stop service in the power industry!

Of course, the greatest contributor to GEV's success is the surge in electricity demand driven by AI. With the explosion of AI technology, the demand for electricity from data centers has experienced explosive growth. These "electricity-hungry monsters" require reliable, efficient, and sustainable power solutions, which is precisely GEV's forte.

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

Currently, GE Vernova invests approximately $1 billion annually in research and development, continuously driving innovation in energy technology. In July of this year, they also acquired the French artificial intelligence company Alteia, making the grid 'smarter', akin to equipping the traditional grid with an 'AI brain' that can intelligently allocate power resources. In the nuclear energy sector, the company is also actively positioning itself; to achieve the net-zero carbon goal by 2050, global nuclear power installed capacity needs to more than double by 2050, and GE Vernova is already allocating resources to reserve nuclear energy technology.

Financial report data is impressive.

From the latest performance data, in Q2 2025, $GE Vernova (GEV.US)$ revenue was $9.1 billion, with a quarter-on-quarter growth rate of 13% and a year-on-year growth of 11%. This is primarily due to robust order growth in both equipment and services, along with an increase in backlog orders, which has driven revenue growth.

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

From the Q2 data,the power businessOrder performance is strong, including 20 large heavy-duty gas turbines (an increase of 6 units compared to the same period last year) and 27 aeroderivative units (an increase of 26 units compared to the same period last year). This is supported by an increase in HA unit deliveries and a consistently robust service business, resulting in power business revenue of $4.76 billion, a year-on-year increase of 7% and a quarter-on-quarter increase of 8%. The EBITDA profit margin in Q2 further improved to 16.4%, maintaining the top position among the three major businesses.

In terms of the wind energy business, Q2 revenue reached $2.25 billion, reflecting a year-on-year increase of 9% and a quarter-on-quarter increase of 21%.

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

In terms of the electrification business, Q2 revenue grew to $2.2 billion, reflecting a robust year-on-year increase of 23% and a quarter-on-quarter increase of 17%, driven by sustained demand for grid equipment and solutions, particularly in high-voltage direct current (HVDC), switching equipment, and transformers.

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

In summary, in this 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. As future electricity demand increases, GE Vernova will be one of the direct beneficiaries, making it worthy of continued monitoring by investors.

Technical analysis

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

When considering the EMA12 and the 50-day moving average, GEV's latest closing price of $577 has already fallen below the EMA50 moving average. If the adjustment continues over the next few trading days and the EMA12 crosses below the 50-day moving average, it will further confirm GEV's downward trend. Additionally, in recent trading days, the trading volume has increased during declines, indicating heavy selling pressure, which may continue to stimulate a price pullback. Conversely, if the adjustment stabilizes around the EMA50 moving average (approximately $584), the stock price may find short-term support, increasing the likelihood of a stronger market outlook.

In summary, GEV's current price level is quite sensitive, and the trend is not sufficiently clear, requiring careful 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.

This concludes this week's stock sharing from 'Opportunity Dispatch.' Fellow investors are welcome to share their views in the comments section. If there are specific stocks you are interested in, please leave a message, and we will consider conducting an in-depth analysis in the Niu Niu Classroom.

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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 does not fully describe the securities, markets, or developments mentioned. Although the sources of information are considered reliable, the accuracy or completeness of the above content is not guaranteed. Additionally, no guarantee is made regarding the accuracy of any statements, views, or forecasts provided in this article.

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