GE Vernova (NYSE: GEV) stock is increasingly positioned as a must-own utility for the coming artificial intelligence (AI) infrastructure buildout. Utility stocks are having a strong year as investors look beyond the large-cap hyperscalers supplying the money to the power and grid backbone that makes AI possible.
The bull case for GE Vernova revolves around a perfect storm of three secular forces: surging electricity demand from data centers, the need for a more stable and flexible grid, and the ongoing energy transition. Its Power and Electrification segments are already delivering double-digit revenue growth and expanding EBITDA margins, backed by a record equipment and services backlog that provides multi-year earnings visibility.
Management has reaffirmed 2025 guidance calling for mid-single-digit to mid-teens organic growth and high-single-digit adjusted EBITDA margins. The company is also forecasting expected free cash flow between $3.0 billion and $3.5 billion.
With capital allocation focused on targeted M&A, grid capacity, and shareholder returns, GE Vernova offers utility-like defensiveness, with higher growth tied directly to AI-driven electrification. For investors seeking infrastructure exposure to the AI theme without taking pure-play semiconductor or data center risk, GEV is starting to look like a core position candidate.
Prolec GE Acquisition Strengthens Grid Leadership
GE Vernova's move to acquire the remaining 50 percent of Prolec GE solidifies its role as a critical supplier to North American utilities, industrials, and data centers. Prolec GE is a leading grid equipment supplier expected to generate about $3 billion of revenue this year with a roughly 25 percent adjusted EBITDA margin, making the business both scale-enhancing and margin-accretive.
By consolidating the joint venture, GE Vernova removes contractual restrictions that limited its ability to sell transformers in North America. This will immediately improve commercial integration, the customer experience, and manufacturing flexibility across seven global sites, including five in the U.S. and one in Mexico.
Management expects Prolec GE to contribute about $600,000 of incremental EBITDA in 2026 on a full-year basis, with $60 to $120 million of annualized cost synergies by 2028 and additional revenue upside as it expands transformer offerings and capacity to serve the AI-driven grid upgrade cycle.
GE Vernova Electrification Growth Accelerates
Beyond transformers, GE Vernova brings a broad portfolio that directly underpins AI-related electricity demand: gas and renewable power generation, high-voltage transmission, grid automation, storage, and power conversion.
- The Power segment, which includes heavy-duty gas turbines, aeroderivatives, nuclear, and hydro, is posting solid double-digit revenue growth, with segment EBITDA margins in the low to mid-teens, supported by long-cycle service contracts and rising turbine orders.
- Electrification – home to Grid Solutions, Power Conversion & Storage, and software – is where the AI grid story really accelerates, with 3Q25 revenue up over 30 percent and EBITDA margin above 15 percent, driven by strength in HVDC, switchgear, synchronous condensers, and storage solutions that enhance grid stability and flexibility.
In fact, orders in the Electrification sector are now roughly twice the revenue in some areas, and backlog has climbed to over $30 billion, reflecting robust demand from utilities and data centers seeking to reduce congestion, connect distributed energy resources, and modernize aging infrastructure.
Analysts Turn Bullish as GEV Fundamentals Improve
Fundamentally, GE Vernova is executing. In its third-quarter 2025 earnings report, the topline grew about 10–12 percent organically, adjusted EBITDA nearly tripled year over year, and free cash flow year-to-date has already exceeded the prior full year. Segment guidance points to organic revenue growth of roughly 6–7 percent in Power, around 25 percent in Electrification, and continued EBITDA margin expansion at the consolidated level. While Wind remains a drag, losses are narrowing as onshore profitability improves and offshore contract issues roll off.
On December 10, GEV stock received an upgrade from Royal Bank of Canada. The firm moved GEV from a Sector Perform to an Outperform with a $761 price target. Bank of America reaffirmed its Buy rating on GEV stock and raised its price target from $725 to $804. Both targets are well above the consensus price target of $724..15.
GEV Stock Technical Setup Points to More Upside
GE Vernova's chart is starting to look like the price of a must-own infrastructure compounder rather than a cyclical industrial. The stock has broken out to two new highs, trading around 713 dollars with a fresh 52-week high near 725 dollars, well above its 50-day and 200-day moving averages.
That momentum comes alongside expanding volume, suggesting institutions are still building positions rather than distributing. With a high valuation multiple on current earnings, any consolidation or pullback toward the 50-day line could be viewed as an opportunity to add exposure to the AI-grid theme.
GE Vernova Supports the AI-Driven Power Surge
GE Vernova offers a rare combination: utility-like resilience, visible multi-year growth, and direct leverage to the AI-driven surge in electricity demand and grid investment. The Prolec GE acquisition, accelerating Electrification segment, and strengthening fundamentals give the story both a credible growth runway and a cleaner capital allocation framework. For investors looking to express the AI infrastructure trade through power and grid assets rather than semis or data centers, GEV increasingly looks like a core, long-duration holding.
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