Engine No. 1 is interesting in this context. They are something of an activist investor though small—$500 million AUM, an amount Chevron probably has in the couch cushions—$4.7 billion cash and equiv. a/o the last quarterly. GE Vernova just reported $10 billion in quarterly revenue and a $8.2 billion cash balance, comforting in light of yesterday's $90.49 (21.52%) whack on the stock.
From Reuters, January 28:
Chevron partners with Engine No. 1, GE Vernova to power US data centers
Energy major Chevron (CVX.N), opens new tab said on Tuesday it has signed an agreement with investment firm Engine No. 1 and GE Vernova (GEV.N), opens new tab to build natural gas-based power plants to run co-located data centers in the U.S.
The announcement comes just a week after U.S. President Donald Trump revealed a private sector investment of up to $500 billion to fund infrastructure for artificial intelligence, aiming to outpace rival nations in the critical technology.
The project will use GE Vernova's natural gas turbines to deliver up to 4 gigawatts of power - enough to power roughly 3 million homes - to data centers located in the U.S. Southeast, Midwest and West regions.While this would initially not flow through the existing transmission grid, the projects will be designed to sell surplus power to keep costs low and support broader energy demands.Chevron expects to begin initial service by the end of 2027, with the potential for project expansion beyond the 4-GW capacity....
....Referring back to the introduction to this morning's "GE Vernova hit with downgrade by Guggenheim (GEV)":
And though it is based on valuation rather than corporate or macro events the downgrade is, unfortunately, from Guggenheim who have been very timely in their calls.
See for example December 5's "GE Vernova shares see 33% target hike from Guggenheim, Buy rating upheld"
In pre-market action the stock is down $57.49 (13.67%) to $363.00.
The other "quality" name we have been touting, electric infrastructure contractor Quanta Services is down $28.01 (7.82%) at $330.02.
It is days like today that are the reason we prefer quality over super-spec lottery tickets: the good ones come back (eventually) the rest may, or may not.
The small modular nuke wannabes OKLO; SMR and the quantum computing stocks, RGTI, QBTS etc. are among the lottery tickets that may or may not come back.
Quanta and GE Vernova will survive and thrive. Even without AI. The U.S. and the world need to string more powerlines and need more generating capacity that will come on line faster than nukes or a baby nukes.
