Howmet Aerospace and GE Vernova Stocks Are Up Big in 2026, Extending Massive Rallies

Core Insights - Howmet Aerospace and GE Vernova stocks have shown significant year-to-date increases in 2026, driven by strong demand in aerospace and AI infrastructure sectors [1][2] - Both companies are positioned as key players in the energy and infrastructure aspects of the AI buildout, which is increasingly reliant on natural gas power [2] Howmet Aerospace - Howmet Aerospace stock is up 24.58% year-to-date in 2026, following a one-year gain of 109.22% and a five-year return of 718.55% [1] - The company reported Q4 2025 earnings with an EPS of $1.05, exceeding expectations of $0.965, and a revenue growth of 14.7% year-over-year [1] - The Engine Products segment saw a 32% increase in gas turbine revenue in Q4 2025, driven by high demand for electricity generation [1] - Free cash flow for the full year 2025 was $1.43 billion, up 46.47% year-over-year, and the company announced a $1.8 billion acquisition [1] - Analysts have raised price targets for Howmet Aerospace, with a consensus "Moderate Buy" rating and an average 12-month price target of $252.95 [1] GE Vernova - GE Vernova stock is up 29.15% year-to-date in 2026, with a one-year return of 212.99%, indicating a tripling of its value [1][2] - The company reported Q4 2025 revenue of $11 billion, surpassing estimates of $10.19 billion, and total orders reached $22.2 billion, up 65% organically [1] - The backlog for GE Vernova has reached a record $150 billion, with significant growth in gas power equipment contracts [1] - For 2026, GE Vernova raised its revenue guidance to $44 to $45 billion and free cash flow guidance to $5 to $5.5 billion [2] - Analysts have also increased price targets for GE Vernova, with a consensus target climbing to $805.25 [2] Shared Thesis - Both Howmet Aerospace and GE Vernova are seen as integral to the energy and infrastructure needs of the AI economy, which requires reliable power sources [2] - The demand for natural gas turbines and related components is expected to drive a multi-year infrastructure cycle, positioning both companies favorably in the market [2]