GE Vernova (GEV)

Critical foundation of flexible, stable, and reliable power. Great run, more to go. Upside of 22% from here. Be patient right now. Don't be greedy, take profits along the way.

You can't have data centres without power. Though the stock is expensive, this is a multi-year trend.

New highs again. AI is also about electricity, which is very important to a name like this. US data centres will drive about half the electricity demand growth from now until 2030, and this name is a direct beneficiary of that. Backlog of ~$160B (translates to roughly 4 years of revenue). 

Things are overbought, so measure your entry points. Midterms will bring volatility, so look for an entry that makes sense to you. Yield is 0.19%.

Great chart the past year: a rally, consolidation, then another advance higher. There's a lot of interest in power generation.

Drop is interesting buying opportunity, if not one that will blow the doors off. Backlog sold out for years, strong margin upside on servicing. Strong trends for years.

It matters whether you'll be buying this in a registered account, and whether you'll be converting CAD to USD. If the CAD climbs against the USD over next 5 years, could be a headwind.

Great visibility to earnings, but valuation is insane. Respect the chart -- you don't usually want to buy toward the top like that.

Makes power systems. Lots of demand for new power, especially with AI and data centres. Biggest business (and fastest-growing) is making gas turbines -- sold out over next 5 years. Demand for power isn't going away anytime soon. 

Clear leader. Remarkably resilient in current market, with strong RSI versus the market. Earnings up 200% for 2025, up ~100% for 2026. Estimate of 55% earnings growth in 2027. Estimates consistently go higher. Yield is 0.23%.

Has a great track record. They should do a stock split.

Its high multiple reflects the hope that GEV will continue to build power plants and feed the AI boom. He still likes it. Owns a big position. 

Power-grid infrastructure that helps transmit and stabilize electricity. Need for power with AI data centres will continue to grow. Rising global electricity demand will be driven by electrification, US industrial reshoring, and AI data centres. Four-year backlog of $50B USD, great visibility on revenues and earnings.

Interesting fact:  25% of global electricity generation relies on GEV technology. Yield is 0.24%.

This space is the place to be. But you have to remember that at some point in time, it's going to cool off. That's what makes him nervous about investing in short-term themes. 

He can't say for certain if it's going to sell more over the next 3-5 years. He'd rather stick with more recurring revenues, but nothing wrong with this name. If you believe in the data centre buildout extending, this is one to own. Take some profits off the table, and rebalance into cheaper names.

It has more business than it can handle from data centre demand. He loves it long term, but expectations are sky high now. Look for a better entry point.