GE Vernova (GEV) has been one of the winners of this year’s AI boom. Its stock is up over 31% so far in 2026, and BofA just reiterated its bullish call days before the company reports third-quarter earnings.
In a research note shared with me on Oct. 20, 2026, BofA Securities analyst Andrew Obin kept his Buy rating on GE Vernova and left his price target at $1,310. That is about 47% above the stock’s recent close of $890.33.
He remains confident in the stock because the company is getting many orders driven by AI data centers’ demand for more energy.
Why Bank of America is sticking with its bullish call on GE Vernova
Obin expects GE Vernova to book orders worth up to $21.0 billion in the third quarter.
That would be 44% higher than the same period last year, with a book-to-bill ratio of 1.70x. The book-to-bill ratio basically means the company is getting new orders 1.7 times faster than it supplies.
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In addition to that, Obin expects revenue of $12.4 billion and adjusted EBITDA of $1.8 billion for the quarter, which are both more than what Wall Street estimated.
“We forecast $21.0bn in 3Q orders ($13.4bn Power, $6.2bn Electrification, $1.5bn Wind). This represents 1.70x book-to-bill and 44% y/y growth,” Obin wrote in the note.
GE Vernova’s turbines have become one of the main power sources behind the AI data center boom.
How gas turbines turned GE Vernova into an AI play
GE Vernova builds the gas turbines, grid equipment, and wind machines that keep the lights on across the electric grid. The company was spun off from General Electric in April 2024, GE Vernova reported, and its gas turbine business has quickly become its main growth driver.
The main driver is the AI market. AI data centers consume a lot of energy, which has raised the demand for power. In fact, the U.S. grid has not seen demand like this in two decades, Investing.com reported.
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Due to the high demand, Obin now expects GEV to reach 13 gigawatts of gas power equipment contracts in the third quarter and 14 gigawatts in the fourth. GE Vernova’s management has already said second-half contracts will top 20 gigawatts.
“GE Vernova is uniquely positioned to meet accelerating global electricity demand,” CEO Scott Strazik said earlier this year in a LinkedIn post. “Economic growth, grid modernization, electrification, data center expansion, and the need for more reliable, resilient electricity are creating sustained demand for our platform of solutions.”
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GE Vernova shares have fallen by about 9% in the past five trading days, and the stock trades at a price-to-earnings ratio of around 25, which is not cheap for an industrial company.
Obin noted that he’s watching whether data center demand will stay strong and what changes there could be among casting and forging suppliers. He’s also watching whether GE Vernova can keep pushing prices higher.
However, he noted that Q4 orders will likely not top the 24 gigawatts of contractual agreements the company booked in the final quarter of 2025.
Still, Obin pointed out that “a peak in quarterly orders does not mean a peak in backlog,” since contracts are already being signed for 2032 deliveries.
The way I see it, that long production pipeline is what makes the current pullback feel temporary. The orders the company already has give the business years of visibility.
