GE Vernova (GEV) has seen its stock price skyrocket by more than 301% over the past year. This significant rally in GEV stock is driven by secular growth trends, including the electrification and decarbonization of the energy sector. Notably, the company provides equipment, services, and technologies that help generate, transfer, and store electricity.
The surge in global energy demand and rising investments in infrastructure, particularly in electrification and decarbonization, suggest that the momentum in GEV stock could continue despite the recent run-up.
Global Energy Demand to Fuel GEV’s Future Growth
Electricity demand is booming worldwide, driven by factors such as the rapid growth of data centers required to support artificial intelligence (AI), the modernization of energy grids, and the broader shift toward cleaner energy sources. All these factors will directly drive demand for GE Vernova’s core offerings and drive its share price.
This is evident from the company’s recent financial performance. GE Vernova reported strong growth across its equipment and services businesses in the second quarter. Its equipment backlog swelled from $45 billion to $50 billion during the quarter. Moreover, it is up about $7 billion in the first half of the year alone. Notably, this growth is coming at improved margins, suggesting that the company is not only growing, but doing so profitably. The service backlog also added another $1 billion, bringing GE Vernova’s total backlog to a commanding $129 billion. This increasing backlog will support solid future revenue growth.
A particularly bright spot for GE Vernova is its Gas Power division. In the second quarter, the company signed contracts for nine gigawatts (GW) of new gas equipment. GE Vernova shipped five gigawatts of gas equipment in the quarter and converted an additional three gigawatts of prior reservations into confirmed orders. These activities are likely to drive the gas backlog. Management is confident it will exceed 60GW in combined backlog and reservations by year-end, and importantly, at higher margins.
The company is also seeing expanding demand for services beyond gas. Steam services orders jumped 30%, thanks in part to support for nuclear power extensions and upgrades. In its Hydro segment, uprates surged 61%, showing that customers are investing more in optimizing their existing power generation fleets.
Production ramp-up is underway to meet the rising demand. Moreover, GE Vernova’s investment in Small Modular Reactor (SMR) technology will likely support future growth. This initiative positions GE Vernova well to capitalize on the growing demand for nuclear energy.
Similar to the Gas Power division, the Electrification segment is also likely to maintain solid growth momentum. Equipment backlog rose by another $2 billion in Q2, with strong gains across Europe, North America, and Asia. Demand in the Middle East is heating up, highlighted by a major grid stabilization project in Saudi Arabia. Data center growth is another driving force. In the first half of 2025 alone, GE Vernova booked $500 million in orders, nearly matching its full-year total from 2024.
GE Vernova’s diverse geographical footprint and product mix position it well to offset the slowdown in certain markets. Management remains confident that the company will grow its electrification backlog in 2025 by at least as much as it did in the previous two years.
While the company’s top-line growth rate is likely to remain solid, its focus on automation, robotics, and AI will drive increased efficiency, thereby cushioning its bottom line and cash flow.
What’s Next for GEV Stock?
GE Vernova’s impressive stock surge reflects the company’s strategic positioning in the global energy transition. As electrification, decarbonization, and AI-driven infrastructure continue to reshape power demand, GE Vernova is capitalizing on these secular trends with robust order growth, a record-setting backlog, and expanding profit margins.
From gas and steam power to nuclear and grid modernization, its diversified portfolio and global reach provide a solid foundation for sustained growth.
Furthermore, with the majority of Wall Street analysts remaining in the “Strong Buy” camp and long-term tailwinds firmly in place, GE Vernova stock could see further gains.
