Jim Cramer urges discipline as Wall Street gets more bullish on GE Vernova

Wall Street analysts have increasingly jumped on the GE Vernova bandwagon during a volatile week for the stock and the broader artificial intelligence trade. Jim Cramer urged caution. Shares of the energy equipment maker rose more than 4.5% on Thursday after plunging 10.5% in the prior session as stocks tied to AI data centers were crushed. Undeterred, Jefferies became the latest shop to upgrade GE Vernova — a leading maker of natural gas turbines that can be hooked up to energy-intensive AI facilities to generate more power. The analysts lifted their rating on the stock to a buy from hold and boosted their price target to $815 per share from $736. They predicted an inflection in turbine orders and pricing in the current fourth quarter and called out more upfront and meaningful free cash flow generation. Jefferies' new price target implies 33% upside from Wednesday's close of $614, which more than wiped out last week's post-investor day rally . "I do not think that this stock — which I love and should be at $700 — is anything but another call for discipline for those who want to put endless numbers of data centers," Jim said on " Squawk on the Street ." He suggested that recent trading in GE Vernova stock epitomizes the fickle near-term nature of investors' appetite for owning companies dependent on the gobs of AI spending commitments, which may or may not come to fruition. Jeff Marks, director of portfolio analysis for the Club, suggested swings in GE Vernova stock mean that would-be buyers must be more vigilant on price. "Wait for one of those big, nasty days to buy it," Marks said during Thursday's Morning Meeting. On Wednesday, we said that if GE Vernova were to sink to $600, we would buy back some shares that we sold into strength on Monday at $694 each. Zooming out, Jim does agree that the long-term GE Vernova story remains attractive. The company has undoubtedly been a "home run" in 2025, with a stock that has still nearly doubled year to date. However, he is less optimistic than Jefferies on turbine pricing. "They've increased capacity, but you can't get one until 2030," Jim said. With customers already locked in at earlier pricing, he continued, "You don't have a lot of pricing power if you're sold out." GEV YTD mountain GE Vernova YTD Thursday's bullish call from Jefferies was followed a handful of others this week. On Tuesday, Morgan Stanley raised its price target to $822 from $710 while reiterating its buy rating, highlighting GE Vernova being at the center of powering AI data centers. Wells Fargo also took GE Vernova's price target to $831 from $717 for the same reason. On Monday, Evercore ISI started coverage on GE Vernova with a buy and a $860 price target. Analysts said the company has "picks and shovels" exposure to many end-markets in addition to data centers. Conviction in the stock increased after GE Vernova delivered robust long-term guidance during its evening investor update on Dec. 9. The next day, the stock surged 15.6% and closed at a record high of $723. At the time, we increased our GE Vernova price target to $800 per share from $700, and reiterated our buy-equivalent 1 rating . As part of Monday's trade, we downgraded shares to our hold-equivalent 2 rating but held our price target steady. (Jim Cramer's Charitable Trust is long GEV. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.