GE Vernova (GEV)

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.

They split the company into 3 to get out of a troubled period. GE Verona has done very well, for instance, which is tied to data centre building. GE Healthcare has done well, but faces some headwinds. AI could make their equipment more efficient, so that's an opportunity. Would I keep all three companies? Each has its virtues, but Verona is very expensive so he'd pass. Would keep the other two. He likes the aerospace business and Healthcare is well-priced.

Has some great long-term aspects to it. A name he likes in the industrial space.

With recent events in Venezuela (and that's a longer-term type of thing), he certainly sees the path for more infrastructure buildout around the world. Obviously, some of the US names are multinational so you could stick with those. There are global names out there, but the US names will get you far.

Is an established nuclear power name. Unlike nuclear IPOs, they are actually building nuclear plants.

It got many orders this year from data centres needing power. It will still go higher, because sales and earnings keep growing like weeds.

Soared 7.29% today it announced its first onshore wind power upgrade. Also, it's building small nuclear reactors to generate energy to build data centres.

They turn natural gas into power that data centres want. They should be putting up factories, though. 

Big backlog of wind turbines. 

EPS of $1.64 missed estimates of $1.75. Revenue of $9.96B beat estimates of $9.17B. Despite the miss, GE Vernova's 3Q earnings demonstrated good operational execution and better-than-expected orders in the Power and Electrification segments, but also a worsening sales and loss outlook for the Wind segment. The latter was expected, with no policy support for equipment. The backlog and slot reservations for the Power segment exceeded 60 GW, at least one quarter ahead of expectations. The Electrification segment led sales growth again, after an 18-month streak of exceeding management's expectations, and is driving annual sales toward the high end of guidance. Adjusted Ebitda margin expansion hasn't kept up with sales, with tariffs and the resulting inflation guided to cost toward the low end of the $300-$400 million range, net of mitigation actions. 
Unlock Premium - Try 5i Free  

Makes gas turbines -- sold out for next 5 years, doubling prices. That's reflected in the stock. Getting more richly valued, but it's a way to own NVDA via industrials. At the tail end of AI demand, so it will follow the pack in that segment.

By far is the best-performing industrial on the S&P, up 193% the past year. Has been hit hard lately since Trump came out against wind subsidies. GEV has a wind division, but GEV is chiefly a natural gas play.

Just had a nice little pullback, but long-term chart looks great. Backlog for turbines is deep, being sold into natural gas and nuclear plants.