GE Vernova AI data center orders hit $5B in half-year

The article highlights how GE Vernova’s data center equipment orders have exploded, with year-to-date orders of $5 billion more than doubling all of last year's data center-related revenue. This growth is tied to the AI industry’s need for reliable power, as evidenced by the company's backlog rising from $150 billion to $176 billion despite completing over $20 billion in business.

Investors have taken notice, with shares up 57% year to date and 450% over two years. However, the stock now trades at a premium valuation of over 40 times next year's consensus earnings, and the article cautions that the biggest gains may be behind. Still, the backlog suggests strong demand, and PwC projects a more than fivefold increase in AI-related natural gas consumption by 2035.

The article also notes that the International Energy Agency expects AI data centers' electricity consumption to double by 2030, and utilities may not meet that demand, implying further opportunities for on-site power providers like GE Vernova.