GE Vernova: The Smartest Technology Stock to Buy With $1,000 in 2025

The global economy is undergoing a dual transformation: the relentless expansion of artificial intelligence (AI) and the urgent need to modernize energy infrastructure. These forces are converging to create a unique investment opportunity in GE Vernova (GEV), a company uniquely positioned to capitalize on both trends. With a robust backlog, accelerating demand for electrification solutions, and a strategic focus on power-to-rack systems for AI-driven data centers, GE Vernova represents a high-conviction, long-term play for investors seeking exposure to the energy-AI nexus.

A Robust Backlog and Recurring Revenue Model

GE Vernova's financial performance in 2025 underscores its strong market position. Third-quarter revenue reached $10 billion, a 10% year-over-year increase, while total orders surged to $14.7 billion, up 55% year over year, driven by its power and electrification segments. The company's gas turbine backlog has grown to 62 gigawatts, with 29 gigawatts in order backlog and 33 gigawatts in slot reservations-a 7-gigawatt increase from Q2 2025. This backlog provides a clear line of sight to future revenue, insulating the company from near-term market volatility.

Moreover, GE Vernova's recurring revenue streams are gaining traction. The electrification segment, which includes transformers, switchgear, and power distribution systems, saw revenue jump 32% year over year in Q3 2025, with equipment orders more than doubling. This segment is now one of the company's fastest-growing, reflecting the critical role of reliable power infrastructure in supporting AI and data center expansion.

Electrification as the Engine of AI-Driven Demand

The surge in demand for electrification solutions is inextricably linked to the rise of AI. Hyperscalers-tech giants building massive data centers to power AI models-are increasingly turning to GE Vernova for end-to-end power solutions. In 2025 alone, the company secured $900 million in orders from hyperscalers, with $400 million concentrated in Q3. These contracts highlight the growing need for "power-to-rack" systems, which deliver electricity from the grid to individual servers with minimal loss-a critical requirement for energy-intensive AI workloads.

As stated by CEO Scott Strazik, "Hyperscalers are prioritizing integrated power systems to ensure the reliability and efficiency needed for AI," a trend GE Vernova is well-positioned to exploit. The company's expertise in designing and manufacturing transformers and switchgear for high-density data centers gives it a competitive edge over rivals lacking similar technical depth.

Strategic Investments and Sector-Specific Momentum

GE Vernova is not merely reacting to demand-it is proactively scaling its capacity. The company has added 800 production workers and 200 new machines in its gas power factories to meet rising orders. Additionally, its acquisition of the remaining 50% of Prolec GE, a leading transformer manufacturer in North America, strengthens its ability to supply critical infrastructure for both utility grids and data centers. These moves signal a disciplined approach to capital allocation, ensuring the company can meet surging demand without compromising margins.

While the wind segment has lagged-orders increased only marginally from $1.8 billion in Q3 2024 to $1.9 billion in Q3 2025-this is a temporary headwind. Permitting delays and tariffs are expected to resolve by 2026, allowing the company to refocus on renewable energy markets. For now, the power and electrification segments provide sufficient momentum to justify a long-term investment thesis.

A High-Conviction Long-Term Play

GE Vernova's growth trajectory is underpinned by structural trends. The company expects 25% organic revenue growth in 2025, surpassing its previous forecast of 20%, and anticipates 10% annual growth through 2030. These projections are conservative given the accelerating demand for power infrastructure. As AI adoption intensifies, the need for reliable, scalable energy solutions will only grow, creating a durable moat around GE Vernova's business model.

For investors with $1,000 to deploy in 2025, GE Vernova offers a compelling combination of visibility, growth, and strategic alignment with macroeconomic forces. Its backlog, recurring revenue streams, and leadership in electrification make it a standout in an era defined by energy transitions and AI innovation.