This investor explains why GE Vernova is a buy
Scotia Wealth Management fund manager Stan Wong is bullish on GE Vernova (GE Vernova Stock Quote, Chart, News, Analysts, Financials NYSE:GEV), citing accelerating power demand and a multi-year backlog as key drivers.
Speaking on BNN Bloomberg’s Market Call on Feb. 12, Wong described GE Vernova, which was spun out of General Electric in 2024, as a “power and grid infrastructure company” positioned at the centre of rising global electricity demand.
“They build large gas turbines used for power generation, wind turbines for renewable projects and grid equipment that helps transmit and stabilize electricity,” Wong said. “The need for power with AI data centers will continue to grow.”
He noted that electricity demand tied to AI data centres is expected to rise to 30 gigawatts from 20 gigawatts over the next four years, while broader electrification trends, industrial reshoring in the United States and expanding data centre capacity continue to support long-term growth.
“If you look at an interesting fact, 25% of global electricity generation relies on GE Vernova’s technology,” Wong said. “That’s massive and that’s going to continue to grow over time.”
He also pointed to grid modernization and reliability as durable themes, adding that the company has approximately US$150-billion in backlog, providing visibility into future revenue and earnings.
GE Vernova shares have gained 120.3% over the past 12 months and closed Feb. 12 at US$815.56. Of the analysts covering the stock, 30 rate it “Buy,” six “Hold,” and three “Sell,” with a consensus price target of US$832.53.
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Rod Weatherbie
Writer
Rod Weatherbie is a journalist based in Prince Edward Island. Since 2004, he has written extensively about the Canadian property and casualty insurance landscape. He was also a founder and contributing editor for a Toronto-based arts website and a PEI-based food magazine. His fiction and poetry have been featured in The Fiddlehead, The Antigonish Review, and Juniper.