GE Vernova Inc. (NYSE:GEV) is one of the AI Stocks on the Market’s Radar. On December 18, Jefferies analyst Julien Dumoulin-Smith upgraded the stock to “Buy” and also raised the price target from $736 to $815. The firm sees stronger gas pricing and long-term services margin visibility for GEV, reinforcing management’s confidence in AI-driven power demand.
“We upgrade to Buy. More positive on the outlook for Power (gas pricing & services visibility) and electrification yet shares are down since the December 9th Analyst Day.”
The firm noted how GEV’s roughly 15% decline in the shares since the analyst day have largely been due to broader data center and AI-related macro concerns. However, this plunge overlooks the resilience of GEV’s contracted services business.
Jefferies noted how the pullback creates an opportunity to ‘buy the dip’ largely since long-term gas service contracts extend well into the 2030s.
Moreover, pricing for the company’s turbines continues to rise even though there are broader concerns about supply and alternative technologies.
“Gas turbine pricing continues to positively surprise and services provides visibility deeper into the 2030s, eventually offsetting gas equipment weakness. ~40% margin on new gas LTSA is unique vs peers: this is 40% of incremental EBITDA $ expansion 2025–2035.”
GE Vernova Inc. (NYSE:GEV) is a global energy company and a soaring AI stock driven by the demand for energy to power artificial intelligence technology.
While we acknowledge the potential of GEV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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