My Top AI Power Stock to Buy Right Now (and It's Not Even Close)

When investors talk about the AI market, they often focus on chipmakers like Nvidia or cloud infrastructure giants like Amazon. However, those tech titans only represent part of the AI boom. Another cohort of stocks that will benefit from that secular growth will be the companies that power up those data centers.

As those data centers consume more power, the global AI in power utilities market could expand at a 19.3% CAGR from 2026 to 2034, according to Fortune Business Insights. To capitalize on that expansion, you should buy a few AI power stocks.

My top choice in this booming market would be GE Vernova (NYSE: GEV), the former energy division of General Electric (NYSE: GE) that was spun off as a stand-alone company in 2024. Let's see why it's still a great buy today.

Image source: Getty Images.

What does GE Vernova do?

GE Vernova operates three main businesses: Power (55% of its 2025 orders), Electrification (33%), and Wind (13%). The Power business produces gas turbines for combined-cycle plants, and steam turbines for coal, gas, and nuclear plants. It also services nuclear power plants.

The Electrification business sells transformers, breakers, substations, and high-voltage direct current systems, and provides automation, optimization, and protection services for electrical grids. The Wind business mainly manufactures onshore and offshore wind turbines.

How fast is GE Vernova expanding?

In 2024, GE Vernova's orders only grew 7% organically. But over the following two years, its organic order growth accelerated dramatically.

Data source: GE Vernova.

The growth was entirely driven by its Power and Electrification segments, which benefited from the soaring electricity demands at new cloud and AI data centers. That expansion offset the softness of its wind business, which struggled with supply chain and execution issues.

By the end of the second quarter of 2026, GE Vernova's backlog had grown 37% year over year to $176.3 billion. That's equivalent to 4.6 times the $38.1 billion in revenue it generated in 2025.

Will GE Vernova maintain its momentum?

For 2026, GE Vernova expects its revenue to rise 20%-22%. That would represent an acceleration from its 9% growth in 2025 and 5% growth in 2024.

As its top-line growth accelerated, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanded from 5.8% in 2024 to 8.4% in 2025. It expects that figure to rise to 12%-14% in 2026. It expects its free cash flow (FCF), which more than doubled to $3.7 billion in 2025, to more than triple to $11.5-$12.5 billion in 2026. That expansion was driven by its increased pricing power (especially for gas turbines), growth in its higher-margin services, and the collection of more upfront and milestone payments from its massive, multi-billion-dollar contracts. It's also downsizing its Wind business to cut costs.

In other words, GE Vernova's core growth engines will continue firing on all cylinders as long as the AI market expands and data centers consume more power.

Why is GE Vernova a great stock to buy right now?

GE Vernova's stock got a bit overheated when it closed at a record high of $1,174.86 per share in June. But as of this writing, it trades at about $960. With an enterprise value of $241 billion, GE Vernova looks reasonably valued at 25 times next year's adjusted EBITDA. From 2025 to 2028, analysts expect its adjusted EBITDA to grow at a 60% CAGR as the AI power boom continues. So if you're looking for a well-diversified play on that trend with plenty of upside potential, GE Vernova checks all the right boxes.

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