GE Vernova (NYSE:GEV) was one of Ken Fisher’s boldest bets in the second quarter. Fisher Asset Management is now GE Vernova’s largest hedge fund holder, with a stake worth about $4.2 billion, or 1.25% of its portfolio, after raising it by 90,037%. GE Vernova ranks ninth in our list of his 10 best AI stocks. Click here to see the other nine picks.
The AI boom has a power problem. A data center can line up chips, financing and customers long before it lines up dependable electricity, and GE Vernova builds the gas turbines, grid equipment and nuclear technology that supply it. See which 10 energy stocks could help solve the problem.
Bull case
Bulls point to a business that is growing in several places at once. Revenue rose 21.9% in the second quarter, and the growth came from both the Power and Electrification segments. In Power, GE Vernova shipped 3 GW of gas turbine capacity in the quarter and signed 20 GW of new orders, from customers in the US, Brazil and Qatar. Demand is broad, since it comes from about 100 customers in 26 countries, and only about 20% of them are data centers. Polen Focus Growth, which trailed the market in the second quarter, started a new position in GE Vernova and called it one of the few global companies able to supply the power generation equipment the world needs. Read why the fund bought it.
Electrification is growing even faster. Its revenue nearly doubled in the second quarter, led by power transmission equipment, and data center orders in the first half were already more than double the total for all of 2025. Management raised its guidance for 2026, and it expects the backlog of orders to keep growing next year. Parnassus Core Equity Fund bought GE Vernova after the stock sold off to a price it found compelling. See what gave the fund confidence.
Bear case
The case against GE Vernova is the price. Bears say the growth is not worth what investors have to pay for it. GE Vernova also missed second-quarter earnings estimates by about 22%, even as revenue grew. Some bulls say its backlog and AI power demand outweigh the miss. Read their case.
The business has weak spots too. Wind revenue fell in the second quarter, driven by lower deliveries of onshore wind equipment, and the segment’s loss widened. The next report sets a high bar, because analysts already expect third-quarter earnings per share to more than double from a year ago. Any delay in making more turbines could cut into margins. Bernstein recently defended the stock, but our coverage says the defense does not answer the valuation question. See why.
Valuation
GE Vernova costs 68.4 times forward earnings, more than three times the sector median of 19.0 and only 5% below its own five-year average of 72.1. Analysts expect earnings per share to rise about 67% in 2027, which puts the P/E at about 41 on 2027 earnings, still more than double the sector. The PEG ratio, which compares the P/E to growth, is 1.90 against 1.45 for the sector, so GE Vernova costs more per point of growth than a typical stock in its sector. Fundsmith, whose motto is to buy good companies and not overpay, added GE Vernova to its portfolio this year. Read what the fund said about the stock.
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