GE Vernova Stock Is Up 560% in 2 Years. Here's What Wall Street Price Targets Say Happens Next

Every investor innately understands that a stock can't continue climbing indefinitely. Eventually, it will reach a peak and suffer a setback.

That's the conundrum facing anyone who currently owns or is eyeing a stake in GE Vernova (NYSE: GEV). After rallying 560% over the course of just the past 24 months, it looks and feels like this ticker is nearer a top than not. Some owners may be thinking about locking in their profits, while anyone looking to buy it is probably waiting for a pullback. And those may well be the right calls.

The analyst community, however, suggests you remain more bullish than not in the near term.

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GE Vernova's gains make sense

If you're not familiar with it, GE Vernova isn't a complicated company. This is the power-production arm of former industrial titan General Electric, which began breaking itself up into smaller, more manageable pieces back in 2023. GE Vernova manufactures wind turbines, power-grid equipment, and even nuclear power solutions.

Its hottest business right now, however, is natural gas turbines used to generate utility-scale electricity.

The surge of demand for electricity resulting from the rapid proliferation of artificial intelligence data centers -- a surge the electric utilities industry wasn't ready for -- is forcing data center owners and operators to solve this power-shortage problem on their own.

Gas turbines are a proven solution that can be implemented relatively quickly. To this end, the company's gas power equipment backlog grew from 83 gigawatts to 100 gigawatts during the first quarter of this year, on track to reach 110 gigawatts by the end of 2026. That's a big driver of the companywide revenue growth of 19.5% that analysts expect this year, followed by 14% top-line growth next year. GE Vernova's biggest challenge at this time? A lack of manufacturing capacity (although it is working on it).

This is why the stock is suddenly performing so well -- the artificial intelligence industry's undeniable, inescapable power shortage problem has been coming to a head over the last year, with no end in sight. Goldman Sachs believes the U.S. artificial intelligence industry's electricity demand is set to double between 2025 and 2027. That's an outlook that's difficult not to notice.

And analysts have noticed, pricing this tailwind into their 12-month price target for GE Vernova. They say the stock's worth $1,226.85 per share, or 14.4% above the ticker's current price. The vast majority of these professionals also still rate GEV as a strong buy despite its prolonged run-up. This obviously leaves room for a respectable amount of upside from here.

Be patient, but not cheap

Bear in mind that even if GE Vernova shares reach this target within this time frame -- which is likely -- it's unlikely this already-volatile stock will get there in a straight line from its current price. Indeed, given the stock's recent history, the ticker's 8.6% tumble from its late-June peak could easily worsen before finding bottom.

Just don't insist on waiting for what looks like that exact bottom before stepping in. You won't know for sure until after the fact, and the bigger risk here isn't getting in too soon, but rather, getting in too late.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova and Goldman Sachs Group. The Motley Fool has a disclosure policy.