GE Vernova stock pulls back 20% amid surge in AI-driven power demand

GE Vernova shares have experienced a pullback of approximately 20% from their 52-week high, despite the stock remaining up 47% over the past year. This decline occurs alongside strong financial performance, including a second-quarter revenue increase of 22% to $11.1 billion and a net income of $5.3 billion for the first half of the year.

The company reported a significant surge in orders, totaling $24.2 billion in the second quarter—an 88% organic increase from the previous year. This demand is largely driven by the expansion of artificial intelligence infrastructure, with data centers now accounting for more than 20% of total orders. The company's total order backlog has reached $176 billion.

Growth is expected to be sustained by the rising electricity needs of data centers. Projections suggest that data centers could account for between 7% and 20% of total U.S. electricity demand by 2032, positioning GE Vernova to provide essential gas turbines, grid equipment, and wind energy systems.