AI Data Centers Breathe New Life Into Old Power Gear

$GE Vernova Inc.(GEV)$   is an energy technology company that builds and services gas and renewable power plants and grid equipment, providing generation and electrification solutions for utilities, industry and increasingly AI data centers worldwide.

GE Vernova's stock price closed over 15% higher at a new all-time high, pushing its market capitalization close to $200 billion, with year-to-date gains already exceeding 120%.

The key numbers behind the pop

GE Vernova's spike after the update is anchored in a much steeper growth path. Management now guides 2025 revenue to 36–37 billion USD and 2026 to 41–42 billion USD, and has lifted its 2028 target to 52 billion USD with a 20% adjusted EBITDA margin. At the same time, the company raised its 2025–2028 cumulative free cash flow outlook from at least 14 billion USD to at least 22 billion USD and still plans around 10 billion USD of capex and R&D over that period, while total backlog is expected to climb from 135 billion USD to about 200 billion USD.

To make the revenue step up more visible, here is a simple chart of the new guidance path:

Data center power is rewriting the "old industrial" script

The strategic hook is that these numbers are increasingly tied to AI data center demand rather than just traditional utility cycles. So far this year, GE Vernova has signed 18 gigawatts of gas turbine contracts and expects to reach 80 gigawatts of combined slot reservations and backlog by year end. On top of that, its partnership with $Chevron(CVX)$   and Engine No. 1 aims to deliver up to 4 gigawatts of dedicated power to United States data centers by 2027, positioning GE Vernova at the heart of new gas fired plants built specifically for AI workloads.

$NVIDIA (NVDA.US)$ took the stage at the Open Compute Project conference to spotlight its 800V DC alliance, a coalition stretching from chipmakers to switchgear giants. Nvidia's 800V DC power system and component partners include companies such as $GE Vernova (GEV.US)$ , $Eaton (ETN.US)$ , $SIEMENS AG (SIEGY.US)$ , $Mitsubishi Electric (ADR) (MIELY.US)$ , $Vertiv Holdings (VRT.US)$ , and $Flex Ltd (FLEX.US)$ . The proposition is straightforward: by moving power distribution to 800V DC, data centers can cut copper losses, streamline power conversion stages, and ultimately boost rack density.

Option market signals

GE Vernova options exhibit a stark divergence between realized and implied volatility as the recent price acceleration drove Historical Volatility to 71.33% while Implied Volatility has compressed to 44.36%. potential pullback rather than betting on continued upside momentum.

This volatility crush is underscored by an exceptionally low IV Rank of 6 and IV Percentile of 13% indicating that option premiums are historically cheap as the market prices in a stabilization of the recent turbulence. Despite the attractive pricing for contract buyers, the Put/Call Ratio of 1.18 on a total Open Interest of 193.47K suggests that traders are adopting a defensive stance and utilizing the lower premiums to hedge against a potential pullback rather than betting on continued upside momentum.

Summary

For investors, the message is simple: the same balance sheet that once looked like a low growth, capital intensive power supplier is increasingly leveraged to the build out of AI data center power and grid infrastructure. The more compute the world wants, the more valuable these "old" turbines, transformers and grid systems start to look.

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