Let's bring in Tammy Zakaria, executive director and head of machinery engineering and construction research at JP Morgan. Who would have thought machinery engineering and construction was the sexiest stock of uh 2025. Why why do you think Caterpillar gained so much.>> First of all, thank you for having me. uh we we did think about it and it Caterpillar was one of our top picks for this year and what you're really seeing is a change in narrative for Caterpillar. Historically, if you look at Caterpillar, it ...

ab Global Research 19 December 2025 Channel Checks: Data Centers Expert: Shift to distributed generation for prime power could shift competitive landscape Channel check: OEMs with diverse products (diesel and gas) are best positioned Alongside our energy team, we co-hosted an expert call on the distributed power generation outlook with a former executive at a large engine OEM. We discussed with the expert topics including capacity, competition, and the demand outlook. Our key takeaways: Read through: Mostly ...

December 15, 2025 02:04 PM GMT Energy Services & Equipment | North America 2026 Outlook: Navigating an Oil Surplus Into 2026, we see NAm nearing a bottom, growth in int'l onshore driven by OPEC activity & take a more muted view on offshore as efficiency gains moderate upside. Against a challenging oil backdrop, we generally prefer exposure to more defensive & unique revenue streams. HAL to Top Pick, NOV to EW. Key Takeaways With this report, Joe Laetsch assumes coverage of North America Energy Services & Eq ...

Core Insights - The rise of artificial intelligence (AI) is leading to a significant increase in global energy demand, comparable to the industrial revolution [1] - Data center power demand is expected to grow by 160% by 2030, with data centers potentially consuming as much electricity as Japan does today [2] Energy Sector Overview - The AI boom is triggering a nuclear renaissance and a resurgence in natural gas infrastructure due to the need for baseload reliability [2] - Companies involved in nuclear energy, renewables, and natural gas are positioned to benefit from the increasing energy demands driven by AI [18] Key Companies - **Constellation Energy**: Owns the largest nuclear fleet in the U.S. and has a significant power deal with Microsoft, alongside a pending acquisition of Calpine for $26.6 billion [5] - **NextEra Energy**: The largest producer of wind and solar energy, now expanding into nuclear through a partnership with Alphabet to restart the Duane Arnold nuclear plant [7] - **Southern Company**: A major utility in Georgia, with over 50 GW of potential large-load growth, primarily tied to data centers [8] - **Dominion Energy**: Serves Northern Virginia, negotiating contracts for 40 GW to 47 GW of new data center capacity [9] - **Vistra**: Combines nuclear and gas generation, actively discussing co-locating data centers with its plants [10] - **Entergy**: Dominates the Gulf Coast region with a pipeline of 7 GW to 12 GW of data center projects [12] - **Williams Companies**: Controls 30% of U.S. natural gas volume and is developing co-located gas-fired generation for data centers [13] - **Kinder Morgan**: A major energy infrastructure company, crucial for supplying gas-fired power plants [14] - **GE Vernova**: Manufactures turbines and generators for various energy sources, experiencing a surge in gas turbine orders [15] - **Cameco**: The premier uranium supplier in the Western world, benefiting from commitments to restart or build nuclear reactors [16]

By Naomi Rovnick LONDON, Dec 4 (Reuters) - BlackRock, the world's largest asset manager, expects AI to continue dominating markets in 2026 and anticipates ​a turbulent ride for investors as speculative trading and leverage raise ‌the risks of a repeat of last month's sharp selloff. Helen Jewell, BlackRock's CIO of fundamental equities ‌EMEA, said on Thursday returns from AI-linked investments would stay on an upward trend, with some periods of doubt over sector valuations or outlook that would keep stock ...

Core Insights - The article discusses the significant impact of artificial intelligence (AI) on the energy sector, particularly highlighting two companies, NextEra Energy and GE Vernova, that are poised to benefit from the increasing demand for energy driven by AI data centers [3][4][5]. Company Summaries NextEra Energy - NextEra Energy is acquiring Symmetry Energy for $800 million and plans to reopen the Duane Arnold nuclear plant by 2029, positioning itself as a strong player in the energy market [4][6]. - The company trades at a trailing price-to-earnings (P/E) ratio of 26.7 and offers a dividend yield of 2.7%, making it an attractive option for investors looking to capitalize on rising AI-related energy consumption [5][6]. - NextEra's natural gas operations are robust, and its reputation as a consistent dividend grower enhances its appeal for long-term investors [6]. GE Vernova - GE Vernova has experienced a remarkable 335% increase in stock price since March 2024, driven by high demand for turbines necessary for AI data center power needs [7]. - The company is involved in various turbine markets, including gas, wind, and hydropower, and is expected to continue benefiting from overwhelming demand as the AI boom progresses [7][8]. - Despite a stretched valuation with a forward P/E of 46.7, there may still be investment opportunities as the company consolidates lower after a strong earnings report [8].

Company Overview - Baker Hughes is an energy technology company with a portfolio that spans the energy and industrial value chain, operating in two segments: oilfield services and equipment (OFSE) and industrial and energy technology (IET) [1][5] - The OFSE segment provides products and services for oilfield operations throughout the lifecycle of a well, while the IET segment focuses on technology solutions for mechanical-drive, compression, and power-generation applications [1][5] Financial Performance - Baker Hughes has delivered strong returns over the past 1, 3, and 5 years, with share price increases of 28.26%, 75.29%, and 232.98% respectively [6] - The IET unit is projected to contribute 55% of revenue and 60% of EBITDA in 2025, while the OFSE unit is expected to account for 45% of revenue and 40% of EBITDA [5] Market Position and Growth Opportunities - Baker Hughes holds a leading position in the LNG market, with a 95% global footprint for turbomachinery required in plant construction, which is expected to grow at a 10% compound annual growth rate through 2030 [6] - The company has seen significant growth in data center orders, increasing from $0 to $550 million in just two quarters, and is investing in larger-scale power systems to support mega-data center deployments [7] Strategic Initiatives - The pending acquisition of Chart Industries is expected to strengthen Baker's position in power, LNG, and industrial sectors, with IET approaching a 20% EBITDA margin [8] - Management has taken steps to improve the earnings mix of the OFSE segment and reduce exposure to commodity volatility by focusing on international markets and implementing pricing discipline [9] Valuation and Activist Involvement - Baker Hughes is currently valued at about 9x EBITDA, which is lower than its industrial and energy technology peers, suggesting potential for valuation improvement [10] - Ananym Capital Management has taken a position in Baker Hughes and is advocating for the spin-off of the OFSE segment, believing it could lead to a 60% increase in stock price [3][11]

Group 1 - Jim Cramer highlights GE Vernova Inc. (NYSE:GEV) as a leading stock in the nuclear power sector, particularly in the context of power generation equipment [2][3] - A Morgan Stanley report indicates that the US could face a 20% shortfall in power supply for data centers by 2028, emphasizing the importance of companies like GE Vernova in addressing these challenges [2] - Cramer notes that GE Vernova has a significant position in his investment trust and expresses a desire for it to grow larger, citing the limited production of turbines as a critical factor in the power ecosystem [3] Group 2 - The discussion around GE Vernova also touches on the role of batteries in energy storage, with references to industry figures like Elon Musk, indicating a broader context of innovation in energy solutions [3] - While acknowledging the potential of GE Vernova, there is a belief that certain AI stocks may offer higher returns with lower risk, suggesting a competitive landscape for investment opportunities [3]

Core Insights - GE Vernova Inc.'s shares have increased by 38.3% over the past six months, outperforming the Zacks Alternate Energy – Other industry's growth of 29.2% [1] - The company is benefiting from the growing demand for energy infrastructure driven by the expansion of data centers and artificial intelligence [4][21] Performance Comparison - Other alternative energy stocks, such as Constellation Energy Corporation and Crescent Energy Company, have underperformed, with CEG shares rising 23.3% and CRGY shares gaining 6.5% in the same period [2] Factors Contributing to Growth - GE Vernova's focus on improving profitability in the wind division and strong performance in gas and power services are key growth drivers [4] - The company has started operations at the Jafurah Cogeneration ISPP in Saudi Arabia, enhancing its position for future projects [4] - A contract to provide grid-stabilizing technology for Transgrid in Australia expands GE Vernova's business into renewables integration [5] - The acquisition of the remaining 50% stake in Prolec GE is expected to increase scale and margins [8] Financial Performance - In Q3 2025, GE Vernova reported orders worth $14.6 billion, reflecting a 55% organic increase, with a backlog increase of $6.6 billion [9] - The Gas Power equipment backlog expanded from 55 GW to 62 GW, indicating rising customer commitments [9] Earnings Estimates - The Zacks Consensus Estimate for 2025 and 2026 EPS indicates a decrease of 6.04% and 2.89%, respectively, over the past 60 days [10] - The company's trailing 12-month return on equity is 17.07%, higher than the industry average of 7.99% [17] Valuation - GE Vernova is currently trading at a forward P/E of 47.93X, a premium compared to the industry's 24.15X [19] - Constellation Energy is trading at 31.61X, while Crescent Energy Company is at a discount of 6.21X compared to the industry [20] Strategic Positioning - GE Vernova's diversified business across Power, Wind, and Electrification allows it to offer a comprehensive suite of solutions, appealing to a broad range of customers [21] - Despite the positive aspects, the company faces challenges such as supply-chain issues and declining earnings estimates [12][10]

Industry Trend - Small turbines and fuel cells manufacturers are experiencing increased investor interest [1] - Tech companies working on AI are driving the demand for electricity [1]