GE Vernova Stock Pummeled on Fears Power-Demand Boom Is Cooling

Core Insights - GE Vernova Inc. anticipates a growing demand for its natural gas turbines from major tech companies constructing data centers, indicating a shift in customer base from traditional utilities to hyperscalers [1][2][3] Group 1: Market Trends - Currently, 90% of GE Vernova's turbine orders are from traditional customers, but this shifts to about one-third for paid reservations from hyperscalers, highlighting a significant market transition [2] - The increasing electricity demand driven by data centers for AI and new factories is benefiting GE Vernova, as the electrification of the economy accelerates [3] Group 2: Financial Performance - Orders in GE Vernova's power business rose by 50% year-over-year to $7.8 billion, while orders in the electrification business surged by 102% to $5.1 billion [5] - The company's gas power backlog and reservations increased to 62 gigawatts from 55 gigawatts, with prices for gas turbines rising and margins improving [5] Group 3: Future Outlook - GE Vernova's turbines are sold out through 2028, with the company now primarily taking orders for 2029, indicating strong future demand [4] - The company has agreed to acquire a 50% stake in transformer-maker Prolec GE for approximately $5.3 billion, further expanding its market position [4]