Gas turbines, grid infrastructure, nuclear SMRs. The power generation backbone for AI scaling. | AGI Score: 9/10 | Analysis date: 2026-03-13
AGI Infrastructure Supply Chain. GE Vernova is a premier AGI beneficiary. Massive demand boost: AGI training and inference require exponential electricity growth, driving insatiable demand for gas turbines, grid infrastructure, and nuclear SMRs. Hyperscalers/data centers are explicitly cited as key growth drivers. Strategic assets: 7,000 gas turbine installed base with 10-year service contracts, established nuclear/grid technology, and physical infrastructure that takes years to replicate. Power demand is THE bottleneck for AGI scaling. Low disruption risk—AGI needs physical electricity regardless of source. Innovation risk modest—even if fusion/new energy tech emerges, deployment takes 10-20 years; GE Vernova captures the transition. Strong AGI tailwind with minimal downside. Classic physical bottleneck thesis.
GE Vernova is the energy spin-off from GE. Three segments: Power (gas turbines, nuclear, steam -- 43% rev), Wind (onshore/offshore wind -- 25%), and Electrification (grid solutions, power conversion, solar/storage -- 32%). 80,000+ employees. Installed base of 7,000+ gas turbines globally.
Installed base of 7,000+ gas turbines with long-term service contracts (10-15 year agreements). Gas turbines are the only large-scale, quickly deployable baseload power source. Grid infrastructure expertise (transformers, HVDC, grid software) is essential for utility modernization. Decades of nuclear engineering knowledge.
AGI Score: 9/10 -- AGI scaling requires exponential electricity growth. Gas turbines are the only technology that can deploy large-scale baseload power quickly (2-3 years vs 10+ for nuclear). GE Vernova's HA-class gas turbines are the most efficient in the world (64%+ combined cycle efficiency). Grid modernization is critical -- you can't power data centers if the grid can't deliver. Nuclear SMR potential is a long-term option.
| Employees | 78,000 |
| Sector / Industry | Industrials / Specialty Industrial Machinery |
| 52-Week Range | $252.25 -- $894.93 |
| Beta | N/A (recently spun off) |
| P/E (Forward) | 35.4x |
| Price / Book | 19.4x |
| Price / Sales | 5.7x |
| EV / EBITDA | 72.7x |
| Dividend Yield | 18.0% |
| Operating Margin | 7.4% |
| Metric | FY2024 | FY2025 |
|---|---|---|
| Revenue | $34.9B | $38.1B |
| Gross Profit | $6.1B | $7.5B |
| Operating Income | $471M | $1.4B |
| Net Income | $1.6B | $4.9B |
| Operating Cash Flow | $2.6B | $5.0B |
| Capital Expenditures | $883M | $1.3B |
| EPS (Diluted) | $5.58 | $17.69 |
| Gross Margin | 17.4% | 19.8% |
| Free Cash Flow | $1.7B | $3.7B |
| Item | FY2024 | FY2025 |
|---|---|---|
| Total Assets | $51.5B | $63.0B |
| Current Assets | $34.2B | $40.2B |
| Goodwill | $4.3B | $4.4B |
| Intangible Assets | $813M | $727M |
| Total Liabilities | $51.5B | $63.0B |
| Current Liabilities | $31.7B | $41.0B |
| Stockholders' Equity | $10.6B | $12.3B |
Tangible Book Value: $7.1B (Equity $12.3B minus Goodwill $4.4B minus Intangibles $727M)
Goodwill + Intangibles as % of Total Assets: 8.2%
GE Vernova has meaningful tangible assets in the form of manufacturing facilities and an installed base of 7,000+ gas turbines generating long-term service revenue. The goodwill ($4.4B) is relatively modest for a company of this size.
Current: $805.02/share, $218.4B market cap, $38.1B revenue, $4.9B net income
| Scenario | 2031 Revenue | 2031 Net Income | Exit P/E | 2031 Mkt Cap | 10x Entry Price | vs Current |
|---|---|---|---|---|---|---|
| Bull (30% CAGR) | $183.7B | $27.6B | 30x | $826.9B | $306.78 | -62% |
| Base (20% CAGR) | $113.7B | $13.6B | 25x | $341.0B | $126.52 | -84% |
| Conservative (15% CAGR) | $88.1B | $8.8B | 20x | $176.1B | $65.34 | -92% |
Key insight: The 10x entry price tells you how far the stock needs to fall before a 10x return becomes plausible.
GE Vernova is a legitimate AGI infrastructure play with high confidence in the AGI thesis. Power generation is THE physical bottleneck for AGI scaling, and GE Vernova is the only company that can serve the entire value chain from gas turbines to grid equipment to nuclear.
The question is valuation. At $218B market cap and 45x+ P/E, the stock already prices in substantial growth. The wind segment is a drag that needs to be fixed or exited.
Floor price analysis: Meaningful tangible assets (gas turbine installed base, manufacturing facilities, grid equipment IP) provide some downside protection, but the premium above book reflects expected future earnings growth from the AI power thesis.
Action: WATCHLIST. Monitor for a significant price decline that brings the stock closer to the 10x entry zone. GE Vernova is a best-in-class power infrastructure company -- the opportunity comes during market panics or when the wind segment disappointments create selling pressure.
Data sources: SEC EDGAR XBRL (CIK 1996810), yfinance, 10-K filing (FY2025), AGI Impact Scoring Framework. Analysis date: 2026-03-13.