Only 20% of GE Vernova's Order Book Is Data Centers. Here's Why That's the Bull Case, Not the Risk.
AI is all the rage right now, but the mania could cool off quickly, without warning.
Overview
It's often highlighted as one of the bigger beneficiaries of the artificial intelligence (AI) revolution. And to be fair, it does serve a decent-sized swath of the AI industry.
However, AI only makes up a minority of GE Vernova's (NYSE: GEV) total business. About 20% of its power-production arm's backlog (measured in gigawatts) is orders for its power-generating equipment to be installed at AI data centers (mostly natural gas turbines). The rest of its order book reflects demand from conventional customers like power utilities, oil refineries, and other high-power-consumption facilities that don't want utility-supplied electricity.
Details
That's not a bad thing. Indeed, GE Vernova's lack of dependence on one single industry -- the AI industry, no less -- actually makes it even easier for investors to own.
Source
Originally published at www.fool.com.