What happened
The author names GE Vernova his top AI power stock, citing a backlog that grew 37% year over year to $176.3 billion by the end of the second quarter of 2026.
Why it matters
That backlog is equivalent to 4.6 times the $38.1 billion in revenue the company generated in 2025, suggesting its order book has run well ahead of its recent sales, according to the author.
What to watch
The stock trades at about $960 on an enterprise value of $241 billion, below its June record close of $1,174.86 per share, so the case hinges on whether its still-accelerating order growth continues to translate into the revenue and cash flow the author expects.
WHO IT HITSInvestors weighing AI-related stocks beyond chipmakers and cloud providers, as well as anyone tracking the power-equipment suppliers that build out data-center electricity capacity.
Summaries like this, every morning.
The author frames GE Vernova as a way to own the electricity side of the AI boom rather than the chipmakers or cloud giants that usually dominate the conversation. The company was the former energy division of General Electric, spun off as a stand-alone company in 2024, and it operates three businesses: Power, Electrification, and Wind. One source of that growth is the supply chain and execution issues that have weighed on the wind business.
Orders are the clearest signal of how the two core segments are doing. Organic order growth accelerated from 7% in 2024 to 34% in 2025, and then to 88% in the first half of 2026. Power orders rose 52% in 2025 and 99% in the first half of 2026, while Electrification went from 21% to 76%. Wind, by contrast, grew 8% in 2025 and fell 10% in the first half of 2026, and the company is downsizing that business to cut costs. The headline growth, the author notes, was entirely driven by Power and Electrification.
Looking ahead, management expects revenue to rise 20%-22% in 2026, an acceleration from 9% growth in 2025 and 5% in 2024. The adjusted EBITDA margin expanded from 5.8% in 2024 to 8.4% in 2025, and is expected to reach 12%-14% in 2026. Analysts expect adjusted EBITDA to grow at a 60% CAGR from 2025 to 2028, though that projection hinges on whether the AI market keeps expanding and data centers keep consuming more power. For investors, the pullback from the June record high may be the more comfortable entry point the author highlights.
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