AI Power Demand Propels GE Vernova Past GE Aerospace in Market Valuation

GE Vernova (GEV) has achieved a historic milestone, surpassing GE Aerospace (GE) in market capitalization for the first time. Both entities currently hold valuations of approximately $290 billion, marking a dramatic reversal in the perceived value of the former General Electric's business segments. The surge is primarily attributed to the explosive growth of AI data centers, which require immense and reliable power. This has revitalized the gas turbine industry, a sector that faced structural doubts during the mid-to-late 2010s as renewable energy gained prominence. The market is now pricing in the necessity of gas-fired power to bridge the energy gap created by AI. Order data reveals a stark increase in demand. Total gas turbine orders rose from 52 units in 2018 to 173 units in 2025, with 37 units already ordered in the first quarter of 2026. The high-capacity HA turbine, specifically utilized for data center power, saw orders jump from 10 units in 2018 to 43 in 2025, with 12 units recorded in the first quarter of 2026. While GE Aerospace remains fundamentally strong—with its stock rising 97% over the last three years—GE Vernova's ascent reflects a broader market realization that electrification and gas power are indispensable to AI infrastructure. The success is attributed to both technological advantages and the strategic leadership of CEO Scott Strazik, who previously led the turnaround of the GE Power services business.