$GE Vernova(GEV.US)

Post 5 of Episode 23

Context: My original interest in GE Vernova was simple: AI needs enormous amounts of electricity, and power is becoming one of the biggest constraints on data-centre growth. What has strengthened the thesis is that this is now showing up in the numbers. GEV ended Q2 with a $176 billion backlog, while gas-power equipment backlog and slot reservations reached 116 GW. Even more striking, data-centre orders within Electrification exceeded $5 billion in the first half of 2026 — already more than double the total for all of 2025.

My trade: I increasingly see GEV not simply as an AI-adjacent power play, but as a company monetising scarcity across both generation and the grid. Gas turbines address the need for dependable new power, while its electrification businesses help move and transform that electricity. The Prolec GE acquisition adds further exposure to the transformer and grid-equipment side of that bottleneck.

Takeaway: A good thematic investment becomes more interesting when the story starts turning into orders. For GEV, AI’s power problem is no longer just a future forecast — increasingly, it is becoming backlog.

@Captain's Treasure