Why GE Vernova Stock Rocketed to a 52-Week High Today
Key Points
GE Vernova foresees significant growth in backlog, revenue, and cash flows through 2028.
It has also doubled its dividend and upped its share buyback program.
One analyst expects GE Vernova stock to rally to $1,000 per share.
Shares of GE Vernova (NYSE: GEV) sizzled in trading today, surging 15.9% to a 52-week high of $725 per share within minutes of the stock market's opening on Wednesday.
The manufacturer of gas turbines stunned the markets today with ambitious financial goals through 2028 and moves to double its dividend per share and significantly increase its share repurchase program. That's not all. GE Vernova is also reportedly collaborating with the U.S. government to boost rare earth supplies.
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Here's all you need to know.
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Solid growth visibility through 2028
A spinoff from the former General Electric (known as GE Aerospace now), GE Vernova is the world's largest manufacturer of natural gas turbines. With hyperscalers and artificial intelligence (AI) data centers operators driving demand for power like never before, GE Vernova is making the most of the boom as its latest outlook reveals.
GE Vernova hosted its 2025 investor update event on Dec. 9 to announce its long-term outlook. Here are the key takeaways from the event:
- Revenue estimate for 2025: $36 billion to $37 billion.
- Revenue estimate for 2028: $52 billion, up from previous guidance of $45 billion.
- Free cash flow (FCF) estimate for 2025: $3.5 billion to $4 billion.
- Cumulative FCF estimate for 2025-2028: $22 billion, up from earlier guidance of $14 billion.
- Backlog estimate for 2028: $200 billion versus current backlog of $135 billion.
GE Vernova also doubled its quarterly dividend payout from $0.25 per share to $0.50 a share and increased its share repurchase program from $6 billion to $10 billion. As of Dec. 3, it had repurchased shares worth $3.3 billion.
Why GE Vernova stock could become unstoppable
In another interesting development that was overshadowed by headlines applauding GE Vernova's numbers, the company is collaborating with the U.S. government to increase stockpiles of the rare earth element yttrium, according to Reuters. Yttrium is used in ceramic applications such as jet engines and turbines, electronics, semiconductors, and lasers. The U.S. currently imports nearly all of its yttrium from China.
Rare earths have been a top priority for the U.S. government under President Donald Trump's leadership, who wants to shore up domestic supplies to reduce reliance on China for critical metals and minerals. The government has even acquired stakes in domestic producers, such as MP Materials, to expedite the mining and production of rare earth elements.
GE Vernova has clearly given investors many reasons to get excited. Several analysts also raised their price targets on GE Vernova, including Mark Strouse from J.P. Morgan, who believes the stock could reach $1,000 per share. Going by today's updates, GE Vernova looks like a stock worth investing in.
JPMorgan Chase is an advertising partner of Motley Fool Money. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool recommends GE Aerospace, Ge Vernova, and MP Materials. The Motley Fool has a disclosure policy.