Jim Cramer: GE Vernova Inc. (GEV) is the only one with the power to meet AI data center demands

GE Vernova Inc. (GEV) is a power generation products provider that has gained 86% YTD and 14.6% in July. Jim Cramer praises the company, citing its strong backlog and ability to provide power for AI data centers. He believes GEV is the only one with the power, and its shares have been on a parabolic move.

GE Vernova Inc. (GEV) has seen its stock price surge following the release of its second-quarter (Q2) 2025 earnings report. The company reported earnings per share (EPS) of $1.86, surpassing the consensus estimate of $1.69, and revenue of $9.11 billion, which exceeded Wall Street’s expectations of $8.78 billion [1]. This robust performance has led to a significant increase in the company’s stock price, with shares closing at $629.03 on Thursday.

The company’s strong Q2 performance was driven by favorable order trends in its power and electrification segments, while wind activity remained subdued. GE Vernova raised its 2025 financial guidance, expecting revenue to trend toward the higher end of its $36 billion to $37 billion range, up from the prior estimate of $36.952 billion. The adjusted EBITDA margin forecast was increased to 8% to 9%, up from high-single-digit estimates. Additionally, the free cash flow guidance was raised from $3.0 billion to $3.5 billion [1].

Several analysts have adjusted their price targets for GE Vernova in response to the strong earnings. Baird analyst Ben Kallo raised the price target from $568 to $706, maintaining an Outperform rating. Barclays analyst Julian Mitchell raised the price target from $580 to $706, maintaining an Overweight rating. Wells Fargo analyst Michael Blum raised the price target from $474 to $697, also maintaining an Overweight rating. Susquehanna analyst Charles Minervino raised the price target from $662 to $736, maintaining a Positive rating. JP Morgan analyst Mark Strouse raised the price target from $620 to $715, maintaining an Overweight rating. Citigroup analyst Andrew Kaplowitz raised the price target from $544 to $670, maintaining a Neutral rating [1].

Morningstar has also revised its fair value estimate for GE Vernova stock to $390.00, reflecting higher long-term revenue and margin expectations within its power and electrification segments [2]. Despite the increase, Morningstar considers the stock overvalued following recent market movements.

Jim Cramer, a well-known financial commentator, praised GE Vernova’s strong backlog and ability to provide power for AI data centers. He believes GEV is the only one with the power, and its shares have been on a parabolic move. This positive sentiment from Cramer, coupled with the company’s strong earnings report, has contributed to the stock’s recent surge [3].

GE Vernova’s ability to raise its guidance and maintain strong order growth signals effective execution in the energy transition market. However, continued cost pressures in wind segments and reliance on traditional energy demand require close monitoring.

References:
[1] https://www.benzinga.com/analyst-stock-ratings/price-target/25/07/46608274/ge-vernova-analysts-increase-their-forecasts-after-better-than-expected-q2-earnings
[2] https://www.morningstar.com/stocks/ge-vernova-earnings-shares-rise-further-upside-long-term-financial-targets
[3] https://www.investing.com/news/analyst-ratings/ge-vernova-stock-rating-reiterated-at-outperform-by-bmo-price-target-raised-93CH-4151692