GE Vernova (GEV) vs. Quanta Services (PWR): Which AI Power Stock Has More Room to Run?

The AI boom is creating a problem that has little to do with chips. Data centers need enormous amounts of electricity, but generating, transmitting, and connecting that power can take years. That is turning power infrastructure into one of the most important parts of the AI investment cycle.

GE Vernova Inc. (NYSE:GEV) and Quanta Services, Inc. (NYSE:PWR) offer two different ways to play that trend. GE Vernova makes much of the equipment needed to generate and distribute electricity, while Quanta builds the infrastructure needed to connect it. Both are benefiting from rising demand, but their advantages are not the same.

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GE Vernova benefits from scarce equipment

One of the biggest questions surrounding GE Vernova Inc. is how much additional power it can actually produce as demand rises.

The answer is increasingly tied to capacity. GE Vernova expects to increase gas-turbine production from roughly 20 gigawatts annually today to 24 gigawatts in 2028 and potentially 30 gigawatts by 2030. Management says much of that future capacity is already being sold, with more than half of its 2031 production slots potentially under contract by the end of 2026.

That scarcity is giving the company pricing power. Management said first-half gas equipment orders were priced more than 20% above late-2025 levels. At the same time, GE Vernova’s growing installed base should create a second source of value through long-term servicing.

The opportunity extends beyond gas turbines. Electrification equipment backlog has climbed above $40 billion, more than four times the segment’s 2025 revenue of about $9.6 billion. That gives GE Vernova considerable visibility as demand for transformers, switchgear and other grid equipment continues to rise.

The question is whether GE Vernova can keep expanding capacity fast enough without giving up the pricing and margins that make the opportunity attractive.

READ ALSO: ‘AI Plays in Disguise’ – Analyst Highlights Quanta Services (PWR) as a Promising AI Power Stock

Quanta’s advantage is execution

Quanta Services, Inc. faces a different bottleneck: getting projects built.

The company’s CEO repeatedly points to skilled labor and execution as its competitive advantage. Quanta self-performs 80% to 85% of its work and has spent more than a decade building its craft workforce. That becomes increasingly important when utilities, data centers and power developers are all competing for the same workers.

Quanta is also moving further upstream. Its recent acquisitions have expanded its capabilities in engineering, permitting, fabrication and project planning. Management believes getting involved earlier can help customers move projects into construction faster.

That matters because some of the biggest transmission and generation projects are still in engineering rather than backlog. Management expects those projects to start appearing in the backlog later this year and moving into the field from 2027 onward.

There is another interesting piece to the story. Quanta says many data centers ultimately need to connect back to the grid, making generation and substations critical bottlenecks. That puts the company directly in the middle of the infrastructure needed to solve the problem.

Which stock has more room to run?

The valuation gap is relatively small. GE Vernova trades at 38.76x forward earnings, compared with 33x for Quanta. That means neither stock is being valued as an ordinary industrial company. Investors are already expecting years of strong growth from both.

The bottom line

The two stocks offer different ways to participate in the same long-term buildout of America’s power infrastructure. GE Vernova is more directly exposed to the equipment shortage, while Quanta is positioned to benefit as that equipment has to be installed, connected, and put to work.

Both stocks seem poised to follow a similar trajectory. That said, if equipment remains the limiting factor, GE Vernova has the more direct opportunity. If the bigger challenge shifts toward actually building and connecting the infrastructure, Quanta could capture more of the spending.

Market Sentiment

Market sentiment toward Quanta Services weakened in Insider Monkey’s database. The number of hedge funds holding the stock declined from 100 at the end of Q1 to 94 at the end of Q2, while the total value of their positions fell from about $5.91 billion to $4.30 billion over the same period.

Market sentiment toward GE Vernova also weakened. The number of hedge funds holding the stock declined from 118 at the end of Q1 to 106 at the end of Q2. The cumulative investment value also declined from about $13.79 billion to $9.26 billion.

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This article is originally published at Insider Monkey.