GE Vernova Stock Is Down 20% From Its High. Here's Why I'd Buy The Dip Today.

Over the past 52 weeks, shares of GE Vernova (NYSE: GEV) have traded as high as $1,195.94. However, with the stock closing at $946.22 on Sept. 21, shares are down 20.8% from that 52-week high. Still, given the opportunities ahead for GE Vernova, I would consider buying shares despite the pullback. Here's why.

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Cashing in on power demand

While shares of GE Vernova are down some 20% from their 52-week high, the stock price is still up 47% over the past year. That's thanks to its strong performance over that period, most recently highlighted in its 2026 second-quarter earnings report.

The company reported orders of $24.2 billion, up 88% organically from the prior-year period. Also, for the second quarter, revenue of $11.1 billion was up 22%, and GE Vernova reported net income of $5.3 billion for the first six months of the year, compared with $756 million in the prior-year period.

Looking ahead, its strong performance can continue, driven by the boom in power demand from data centers fueled by artificial intelligence (AI). According to a 2025 Bloomberg report, 7% to 20% of U.S. electricity demand could come from data centers by 2032. And as GE provides the power infrastructure that allows those data centers to function, it can continue to benefit from that demand.

Aside from its gas turbines and grid electrification components, GE Vernova also has a less-talked-about division that could become a bigger revenue generator in the future.

The quiet nuclear energy play

With communities worrying about rising energy bills from data centers and traditional grids struggling to meet current demand, let alone having the ability to meet growing demand, a new wave of power solutions will be needed. That opens the door for nuclear energy, particularly for companies developing small modular reactors (SMRs)

SMRs can offer greater flexibility in placement than traditional reactors, greater scalability, and potentially increased safety and security.

"Because SMRs have a simple and compact design, consumers will have more options to utilize nuclear power. This includes locations unable to support large reactors, in addition to powering smaller electrical markets and grids, isolated areas, and sites with limited water," the Office of Nuclear Energy wrote in a 2020 blog post.

However, when discussing nuclear energy stocks, Oklo and NuScale Power often receive the most attention as pure-play companies. But neither has commercial operations up and running. In comparison, GE Vernova is constructing an SMR, the BWRX-300, in a joint venture with Hitachi; construction is already underway, with commercial operation expected by the end of 2030.

While that is still a few years away from being up and running, it could become a division that drives more long-term value for GE Vernova and contributes more to sales and, eventually, profitability.

The bottom line on investing in GE Vernova

While GE Vernova can be a valuable long-term portfolio addition, it also faces some challenges. One is that conservative investors may feel uncomfortable with the forward price-to-earnings ratio of 38.1, thinking it's too rich. It's also dealing with declining sales in its wind division, which dropped 16% to $3.4 billion for the first six months of 2026.

That said, this is a company benefiting from building the infrastructure needed to keep AI running, which shows no signs of slowing down. For long-term investors, despite the stock price having declined from its 52-week high, I'd still be comfortable investing in GE Vernova.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova. The Motley Fool recommends Hitachi and NuScale Power. The Motley Fool has a disclosure policy.