GE Vernova: A Shining Star in the Energy Transition Sky

GE Vernova's shares have skyrocketed to dizzying heights since their market debut in April. On Wall Street and among investors, the company has generated significant interest due to its clear focus on the energy transition. In collaboration with technology giants like Microsoft, it is investing in nuclear power to support efforts to expand in the field of artificial intelligence. This strategy is paying off: GE Vernova is one of the three most successful companies in the S&P 500 index of 2024. The fact that nuclear energy plays a leading role in stock development is certainly justified. The signed 20-year power purchase agreement between Constellation Energy and Microsoft reinforces nuclear power's place in the growth story of the AI industry. The deal indeed signaled that nuclear power will drive the burgeoning AI wave. Companies like Amazon are also rushing to secure partnerships with non-fossil energy providers. GE Vernova, which emerged from the breakup of General Electric, is fully focused on the energy transition through electrification and nuclear energy. With its business areas in power, wind, and electrification, the company contributes to generating about 25% of the world's electricity. Developments in nuclear technology are remarkable: The sector offers advanced reactors and services, with the stated goal of continually adding to the global nuclear capacity. The numbers support this: In the second quarter, GEV recorded a 35% increase in orders in electrification and a 30% increase in the power plant sector. Despite inflation and supply chain issues, the company even plans to streamline its loss-making offshore wind business. The outlook for 2025 and beyond is positive, which is why several analysts also issued a buy recommendation for the stock. Not to mention, the U.S. Department of Energy plans to contract GE Vernova for the much-needed expansion of the next generation in the nuclear and uranium industry. This is an additional advantage on the path to further U.S. energy independence.