Because at Climateer Investing we recycle, here's the introduction to May 24's Ha! The "Mini-Tender" Stock Manipulation Is Back, This Time Targeting GE Vernova (GEV):
GE Vernova is the power spinoff of the old General Electric. Wind turbines, natural gas turbines, real "stuff." The company says that "stuff" supplies around 30% of the world's electricity. Also nuclear, hydro and transmission. As I said real.
And the headline story from Yahoo Finance, October 6:
The massive demand for energy as Big Tech races to build its AI infrastructure has been a tailwind for GE Vernova (GEV), the power equipment maker that spun out of iconic GE earlier this year.
Shares of the Cambridge, Mass.-based company have been hovering near all-time highs, along with the broader S&P 500 Industrial ETF (XLI), as investors look to play off the electrification and artificial intelligence theme led by AI chip heavyweight Nvidia (NVDA).
"[Vernova] seems to be caught up in the broader trade of AI and power demand," Daniel Rich, analyst at CFRA, told Yahoo Finance. The firm has a Buy rating and a price target of $230 on the stock.
Much of Wall Street's bullishness stems from expectations of power demand growth stemming from Big Tech's commitment to record infrastructure technology investments.
Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), and Meta (META) are expected to spend a combined $200 billion this year on cloud and AI investments, including building and maintaining data centers.
Power demand from infrastructure technologies in the US is expected to more than double by 2030 thanks to use of AI, according to consulting firm McKinsey & Co.
"Because of how much more power we're going to need —if the projections are accurate to power data centers — to power AI applications, Vernova is definitely a winner," he added....
....MUCH MORE
On Friday the stock closed up $10.91 (+4.28%) at $265.59 and in early pre-market trade this morning is off 44 cents.
Previously:
January 2024 - "GE Gets Biggest Onshore Wind Order Ever Ahead of Split Up" (GE)
May 2024 - Goldman Sachs' Picks For Data Center Electricity Demand Growth
On a related note, Quanta Services (PWR) set a new all-time-high on Friday, closing up $7.32 (+2.45%) at $305.72 after knocking on the door for a week. It is also trading down this morning, -$1.02 at $304.70. Here's a month of PWR via TradingView:
No need to chase either one though both are the class acts of their respective industries, along with cable giant Prysmian S.p.A. (PRY.Milan).
