GE Vernova (GEV) Downgraded Despite AI Energy Momentum—Here’s Why

GE Vernova Inc. (NYSE:GEV) is one of the AI Stocks in the Spotlight TodayOn July 28, Guggenheim downgraded GE Vernova (GEV) to “Neutral” from Buy and removed the firm’s previous $600 price target. The firm cited the belief that the stock’s valuation “fully reflects even the substantially above-consensus estimates” the firm is now publishing.

 “Valuation is still admittedly attractive if investors are willing to focus on 2029 and beyond, but considering the wait required to get to that outcome, we no longer find GEV attractive from a risk/return standpoint.”

GE Vernova (GEV) Downgraded Despite AI Energy Momentum—Here’s Why

The company reported better-than-expected results for the second quarter and raised full-year guidance. Sales of aeroderivative turbines, used in data centers, increased during the quarter. Moreover, backlog growth suggests potential for production may keep expanding beyond 2028.

However, a formal announcement on capacity expansion is unlikely before late 2026, noted another firm Mizuho.

GE Vernova Inc. (NYSE:GEV) is a global energy company and a soaring AI stock driven by the demand for energy to power artificial intelligence technology.

While we acknowledge the risk and potential of GEV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GEV and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.