AI-powered electricity demand boosts valuation! GE Vernova (GEV.US) stock price hits record high: Wall Street unanimously bullish, JP Morgan sees it going to $1000!

On Wednesday, GE Vernova (GEV.US) led the S&P 500 index components with its stock price hitting a historical high of $731 at one point during the day, eventually closing with a 15.62% increase at $723. Prior to this, the company announced a doubling of dividends, an increase in stock buyback authorization, released financial guidance for 2026, and raised profit guidance, indicating a strong demand for new natural gas power generation in the coming years. As a result of this news, several Wall Street investment banks also expressed bullish views. GE Vernova is benefiting from the surge in demand from American Electric Power Company, Inc., primarily driven by data centers, artificial intelligence, and the overall electrification of the economy. The stock of this company, which was spun off from GE Aerospace in early 2024, has more than doubled since the beginning of this year. GE Vernova expects revenue to reach $52 billion by 2028, with a compound annual growth rate in the low double digits, higher than the previous forecast of $45 billion (high single-digit growth rate), while increasing its adjusted EBITDA profit margin from 14% to 20% during that period. The company believes it is in a favorable position to meet the increasing demand for electricity. CEO Scott Strazik of GE Vernova stated at the company's Investor Day event that they expect to sign contracts for 80 GW of combined-cycle gas turbine capacity by the end of the year. In recent months, concerns about the artificial intelligence bubble and its impact on the energy industry have disrupted the stock prices of technology and power companies. Strazik refuted these concerns with GE Vernova's guidance. He stated that he does not believe there is a bubble in the technology or power industries. He said that the fourth quarter of this year will be the highest quarter in sales to super-sized data center providers for the company, and he believes sales will continue to grow next year, with "scale definitely expanding". In response to this positive news, Morgan Stanley analyst Mark Strouse raised GE Vernova's target price to $1000, the highest on Wall Street. He stated that the company's power order activity "significantly exceeded expectations," and the company is trying for higher pricing in every transaction. Oppenheimer upgraded GE Vernova from "hold" to "outperform the market" with a target price of $855. Analyst Colin Rusch believed the company has the potential to become a "main technology partner for super-sized data centers powered by artificial intelligence," and as data centers evolve to higher voltage architectures while grid capacity remains limited, the company will continue to gain market share and pricing power. UBS Group AG raised its target price from $760 to $835 and maintained a "buy" rating. UBS Group AG analyst Amit Mehrotra wrote that the target for GE Vernova is "very optimistic" and "higher than expected," adding that the company has been "excellent in achieving its targets, so we believe these forecasts are positive for actual performance." UBS Group AG pointed out that GE Vernova's long-term performance guidance may be too conservative, especially in the power business. Meanwhile, William Blair reiterated its "outperform the market" rating and acknowledged the company's upgraded 2028 performance guidance, although it still remains comparatively conservative. The firm pointed out that GE Vernova performed in all expected aspects in its presentation, including the upgraded 2028 guidance, and William Blair still considers this guidance to be relatively conservative. The firm continues to view GE Vernova as a leader in energy and power infrastructure, which it believes is a critical component of the AI theme. Wolfe Research maintained its "market perform" rating, noting that the company's 2026 fiscal year performance guidance and updated "through 2028" targets exceeded previous high expectations. The firm stated that the new targets should be viewed as "more realistic, with less potential for outperformance by 2028," although it acknowledges there are still opportunities for upside, especially in pricing and VC productivity. Additionally, RBC Capital Markets raised the company's stock rating from "sector perform" to "outperform the market," citing stronger-than-expected outlook and greater opportunities for profit margin improvement. BMO Capital also raised its target price to $780, pointing out that GE Vernova's financial updates exceeded expectations, with an implied EBITDA expectation of $10.4 billion by 2028. These updates reflect GE Vernova's strong financial position and strategic growth plans, as emphasized in a recent investor update. Analysts at Jefferies Financial Group Inc. also stated that GE Vernova's forecasts "far exceed expectations in terms of profit margins, EBITDA, and free cash flow," noting that the company's outlook for free cash flow in 2026 is "constructive," with profit margins in the electrification business exceeding 20%.