GE Vernova tops Caterpillar in AI power exposure as $5 billion orders double

The surge in AI infrastructure spending is reshaping demand across the power sector. Technology companies are investing massively, and analysts expect AI capital expenditures to reach $800 billion this year, with Goldman Sachs projecting hyperscaler capital investments could reach $1.7 trillion by 2027 and $2.1 trillion by 2029. That outlook has lifted industrial suppliers of power solutions, making GE Vernova and Caterpillar standout stocks in recent years.

GE Vernova's business spans the electricity value chain—generation, transmission, conversion, and storage—through its power, electrification, and wind segments. Its aeroderivative gas turbines appeal to data center operators because they can be delivered in as little as six months, providing bridge power while operators wait for grid hookups or larger equipment. Utilities are also ordering its large-scale HA gas turbines, which can provide multiple gigawatts of power, and strong orders for substation and transmission infrastructure have been driving earnings.

The contrast with Caterpillar comes down to scale and mix. GE Vernova's equipment backlog is nearly $112 billion in its power segment and $44 billion in electrification, split evenly between equipment and services. With roughly 20% of its 116 gigawatts in contracted gas equipment tied to data center customers, GE Vernova appears more directly levered to AI-driven power demand than Caterpillar, though that also makes it more sensitive to any pullback in AI spending.