Why Shares in GE Vernova Popped Today

Shares in GE Vernova (NYSE: GEV) rose by more than 6% as of 2 p.m. today. The move comes after investors welcomed the first-ever wind repower upgrade contract outside of the U.S.. The deal isn't major, just 25 repower upgrade kits for GE Vernova turbines and a five-year service agreement for the Taiwan Power Company, but it is symbolic of management's efforts to turn the wind power business into profit. Long-time investors who remember the dark days of the former General Electric will recall that the gas turbine business was the most problematic part of the business, with electrification (grid equipment) a slow grower. Less than a decade ago, the market was sounding the death knell for gas turbines in favor of the inexorable rise of renewable energy (which included GE's wind power business). Since then, there has been a remarkable turnaround, as cost, logistics, and supply chain issues have slowed the adoption of wind power. Meanwhile, the growing demand for power to support AI data centers has led to a complete reversal of roles. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool