GE Vernova (GEV) soared to a record high this week, underscoring the company\u2019s accelerating momentum as global demand for electricity intensifies. Shares jumped 16% to $723.09 after the company announced a powerful combination of doubled dividends, expanded share buyback authorization, and upgraded long-term earnings projections\u2014signals that natural gas-fired power and electrification remain structural growth markets.<\/p>\n\n\n\n
Spun off from General Electric in early 2024, GE Vernova has quickly become one of the strongest performers in the S&P 500. Its surge is being fueled by unprecedented growth in U.S. electricity consumption, driven largely by the rapid expansion of AI, data centers, and economy-wide electrification<\/strong>. \u201cAI is a real driver for us right now, but it isn\u2019t the only driver,\u201d CEO Scott Strazik said, emphasizing the company\u2019s ability to generate substantial cash and pursue strategic expansion.<\/p>\n\n\n\n The company raised its post-2028 earnings estimate to $52 billion from $45 billion and increased its projected EBITDA margin for the same period to 20%, up from 14%. Oppenheimer & Co. responded with an upgrade to \u201cbuy\u201d and boosted its price target to $855, praising GE Vernova\u2019s leadership in high- and medium-voltage systems and its potential to become a primary technology partner for hyperscale data-center operators<\/strong>.<\/p>\n\n\n\n Shareholders also gained from a dividend hike to 50 cents per share and an expanded buyback program\u2014from $6 billion to $10 billion. Looking ahead, GE Vernova expects its backlog to grow from $135 billion to roughly $200 billion by 2028, including a doubling of its electrification backlog.<\/p>\n\n\n\n Despite concerns about an AI bubble, Strazik dismissed the fears, noting that fourth-quarter sales to hyperscalers will be the company\u2019s largest ever\u2014evidence that demand for power infrastructure is not only real but accelerating.<\/p>\n\n\n\n