GE Vernova Forms $50m Alliance with MIT for Five Years

GE Vernova, a division of General Electric, has formed a $50m five-year alliance with the Massachusetts Institute of Technology (MIT). The partnership will focus on research and development in various areas, including advanced manufacturing, artificial intelligence, and cybersecurity. The collaboration aims to accelerate innovation and drive growth in the energy and transportation sectors.

GE Vernova, a division of General Electric, has recently formed a $50 million five-year alliance with the Massachusetts Institute of Technology (MIT). This strategic partnership aims to drive innovation and growth in the energy and transportation sectors through research and development in advanced manufacturing, artificial intelligence, and cybersecurity GE Vernova stock rating upgraded to Buy at Melius on AI demand^[1].

The alliance comes at a time when GE Vernova has been receiving positive analyst attention. On Monday, Melius Research upgraded GE Vernova's rating from Hold to Buy, with a price target set at $740.00. This target is near the high end of analyst estimates, ranging from $280 to $760 . The upgrade is attributed to improving fundamentals, with the company's stock having risen approximately 400% since its spinoff. Over the past year, GE Vernova has shown impressive growth, with a return of 177.84% and revenue reaching $36.62 billion .

Melius Research highlighted the strengthening artificial intelligence sector as a key driver for GE Vernova's growth prospects. The research firm also pointed to pricing power as a significant factor, noting that "some of the price increases that follow the demand shock we are experiencing are hard to internalize" .

In addition to the analyst upgrades, GE Vernova has recently announced a significant transaction. It sold its Proficy manufacturing software business to TPG for $600 million, with potential additional proceeds based on future outcomes. This deal will transform Proficy into a standalone entity serving over 20,000 customers in the manufacturing and infrastructure sectors .

GE Vernova also plans to cut 600 jobs across Europe, including 120 in France, as reported by the CFE-CGC and CGT unions .

On the analyst front, UBS reiterated its Buy rating on GE Vernova, maintaining a price target of $760. Goldman Sachs raised its price target for GE Vernova to $715 from $500, maintaining a Conviction Buy rating. Jefferies adjusted its price target to $658 from $620, maintaining a Hold rating .

These developments reflect a period of strategic shifts and analyst confidence in GE Vernova’s growth potential.