GE Vernova shares have climbed 45% in 2026, easily outperforming the broad S&P 500 index.
Demand for GE Vernova's infrastructure solutions can continue to climb as the AI market expands.
Despite this future demand potential, don't expect the stock to keep going higher in a straight line.
One of the solid pick-and-shovel plays on artificial intelligence (AI) in 2026 has been GE Vernova (NYSE: GEV), providing the power infrastructure needed to keep data centers running through gas turbines, grid hardware, and software solutions. As of the Sept. 23 closing price of $951.82, shares are up 45.6% compared to the S&P 500's 12.5% return over the same period.
With that type of outperformance, it's reasonable to wonder if it's worth sitting on the sidelines and waiting for a short-term pullback before buying shares or adding to a stake. For anyone having that internal debate, here's what I'd consider next.
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For GE Vernova, there are no signs that AI-driven energy demand will slow. One piece of evidence is that some of the largest tech companies aren't putting the brakes on their spending, which is generally increasing due to AI infrastructure build-outs.
Amazon, for instance, announced in July that it was upping its 2026 capital expenditures from $200 billion to $220 billion. With that increase, CEO Andy Jassy said on Amazon's 2026 second-quarter earnings call, "Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027, too." Also in July, Alphabet announced plans to spend between $195 billion and $205 billion in 2026, up from a previous forecast of up to $190 billion.
Looking even further out, research from Bloomberg suggests that around 20% of the electricity consumption in the United States by 2035 will come from data centers, up from a projected 5.9% for 2026. And looking at the overall AI market broadly, the global market size is projected to grow from $539.5 billion in 2026 to $3.4 trillion by 2033, according to Grand View Research.
Adding it all up, there's nothing to suggest the current demand GE Vernova is seeing for its hardware and software to help power AI will slow anytime soon. If anything, it will only accelerate. So, for anyone planning to hold GE Vernova shares for years or longer, I wouldn't worry about whether it is too late to buy, as the stock price could still have plenty of room to ultimately march higher from where it's trading today.
Even though future demand for GE Vernova's hardware and software shows promise, the stock price could still experience pullbacks, as it has already. Despite shares climbing 45.6% so far in 2026, they remain about 20% below their 52-week high of $1,195.94. For anyone who bought into the 52-week high, even while believing in GE Vernova's long-term upside, it can be difficult to cope with the decline.
To counter that feeling of worry, investors might stagger out investments. Instead of using all of an investable budget at once, an investor could set up a plan, either manually or automatically, to buy a set number of shares or invest a set dollar amount each week, biweekly, or monthly. That way, the power of dollar-cost averaging kicks in, which can mitigate worries about buying at a peak and keep the itch to sell at bay if the stock price swings lower.
Before you buy stock in GE Vernova, consider this:
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and GE Vernova. The Motley Fool has a disclosure policy.