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GE Vernova Faces Pressure as Investors Worry About AI Bubble

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GE Vernova Faces Pressure as AI Bubble Fears Rise

Business Honor
19 December, 2025

GE Vernova's stock declines sharply as investors express concerns about potential risks in the AI market.

U.S. equities experience extreme price fluctuations while investors speculate the artificial intelligence boom is becoming a bubble. The GE Vernova (GEV) company manufactures Turbines & Grid Equipment used to produce and transport electricity. It has recently received scrutiny for being an AI-related investment as a result of the growing electricity needs caused by Data Center growth. Over the last five days, the company's stock has fallen almost 15%. A number of analysts continue to maintain a positive outlook on the company, however.

The Nasdaq Composite Index, which is heavily weighted toward technology companies, fell 2.4% during the past five days. Investors remain wary of many different factors; some were alarmed by mixed earnings reports of some of the largest companies: Oracle Corporation and Broadcom Limited, while others are questioning whether the enormous capital expenditures being made by both established and soon-to-be established artificial intelligence (AI) technology companies are going to pay off or not.

According to Fidelity analyst Clayton Pfannenstiel, who is the co-manager of Fidelity Select Industrials Portfolio "AI is still in the early developmental stage." He pointed out that there are tremendous opportunities to be leveraged in the areas of Power Generation and Grid Infrastructure due to the growing demand for energy to power AI applications. "If we need power immediately, the predominant source would be a Gas Turbine.”

On December 9, during their most recent investor update, GE Vernova revised their revenue prediction for 2028 to $52 billion, an increase over the previous estimate of $45 billion, and expects the adjusted EBITDA margins to be approximately 20%. In addition, GE Vernova raised its backlog estimate to $200 billion due to strong expansion in the Electrification division and anticipates free cash flow will increase from $14 billion in 2025 to $22 billion in 2028.