GE Vernova Inc. (GEV) Could Benefit From Shifting Power Sources, Says Jim Cramer

We recently published Jim Cramer Recently Discussed These 11 Stocks & Said The Robots Are Coming. GE Vernova Inc. (NYSE:GEV) is one of the stocks Jim Cramer recently discussed.

GE Vernova Inc. (NYSE:GEV) is a former General Electric business that has prospered on the stock market in today’s AI wave. This is because of the firm’s exposure to nuclear energy as it manufactures turbines and other equipment. GE Vernova Inc. (NYSE:GEV) is one of Cramer’s top nuclear power stocks. The CNBC host is typically dismissive of nuclear energy stocks as he believes that the returns from nuclear power projects typically take years to materialize. In his recent remarks, Cramer discussed by GE Vernova Inc. (NYSE:GEV)’s shares recently soared:

“And then GE Vernova. Which you know yesterday there was an article in the Times about how windmills are going to get hurt in the Republican bill. GE Vernova was up nine again. A lot of it has to do parts where they’re made and they’re fabled for making American stuff. I would think that if you banned Chinese parts or you make them pay, that people would be willing to, that they might shift from one kind of power to another. But wind power is very very cheap.”

Later, Cramer discussed how GE Vernova Inc. (NYSE:GEV) can benefit from President Trump’s trade discussions:

“Second, as Vernova CEO, Scott Strazik told us when he came on the show in late April, his company could see some real benefits from trade tensions. Just like Boeing’s planes, GE Vernova’s turbines are big-ticket items. They cost tens of millions of dollars each. People say they’re about $50 million on average. The Trump administration wants a lot of countries to reduce their trade surpluses with the United States, and buying a bunch of natural gas turbines is an easy way to make that happen.

I’ve liked GE Vernova since before it was spun out of GE, and I see no reason to turn bearish now. Sure, the stock’s expensive, trading at roughly 72 times this year’s earnings estimates, which is why a couple of analysts have downgraded it, from Buy to Hold in recent weeks. But the scale of the opportunities is enormous, and the story seems almost tailor-made for this moment. Look, over time, I bet GE Vernova can continue to grind higher. Count me as a buyer for the trust.”

While we acknowledge the potential of GEV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.