I'm Calling It: GE Vernova (GEV) Is a Buy Before This Catalyst Drops

General Electric (NYSE: GE) spun off its energy division as GE Vernova (NYSE: GEV) two years ago. Since its market debut, GE Vernova's stock has surged nearly 750%. Let's see why its stock soared -- and why it's still worth buying today before a major catalyst kicks in.

GE Vernova is a great electrification play

GE Vernova is one of the most balanced plays on the growing need for electricity. It operates three segments: Power (55% of its 2025 orders), Electrification (33%), and Wind (13%).

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The Power segment produces gas turbines for combined-cycle plants, steam turbines for coal, gas, and nuclear plants, and provides services for nuclear power plants. The Electrification segment sells transformers, breakers, substations, and high-voltage direct current systems. It also provides automation, optimization, and protection services for electrical grids. The Wind segment sells onshore and offshore wind turbines.

In 2025, its total orders grew 34% organically, up from its 7% growth in 2024. That acceleration was driven by its 51% and 23% growth in Power and Electrification orders, respectively, which offset the slower growth of its Wind segment. The rapid expansion of the power-hungry cloud, data center, and AI markets generated strong tailwinds for its two largest businesses.

What is the next big catalyst for GE Vernova?

GE Vernova is a well-diversified play on fossil fuels, nuclear power, and green energy solutions. In the past, that demand was cyclical and driven by the macro environment.

But today, the "AI grid supercycle" is becoming its biggest single long-term catalyst. The insatiable demand for more power from hyperscalers like Amazon (NASDAQ: AMZN) and AI infrastructure providers like Crusoe boosted GE Vernova's backlog to $163 billion at the end of the first quarter of 2026. That's more than triple its projected revenue of $45.5 billion for 2026, and will likely swell even larger over the next few years as the AI market expands.

According to Fortune Business Insights, the global AI market could grow at a 26.6% CAGR from 2026 to 2034. Unlike its less diversified industry peers, GE Vernova can provide both green energy and fossil fuel solutions for that rapidly expanding market.

From 2025 to 2028, analysts expect GE Vernova's revenue and EPS to grow at CAGRs of 16% and 24%, respectively. At $1,110 per share, it isn't a screaming bargain at 36 times this year's earnings, but it also doesn't seem overvalued relative to its long-term growth potential.

Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, GE Aerospace, and GE Vernova. The Motley Fool has a disclosure policy.