The Rising Influence of Rising Affluence

[DewDiligence]

GE Vernova—(ticker: GEV)—GE’s power spinoff, is a thematic investment for this board:

https://www.wsj.com/business/energy-oil/general-electrics-power-spinoff-could-be-formidable-once-fully-charged-0bd15005

GE Vernova does appear to be well positioned to ride the electricity-demand growth story, which has gained more attention lately because of the hefty energy requirements that artificial-intelligence data centers come with. Its gas turbines represent roughly 51% of global capacity, according to JPMorgan. That comes with an attractive stream of recurring service revenue, especially as natural-gas-fired power plants run more frequently to make up for the loss of coal-fired power plants.

It is also the top onshore wind installer in the U.S., a market that now has robust and prolonged policy support from the Inflation Reduction Act. Electrification, the unit that sells equipment and software for the grid, is its smallest segment but also comes with high growth and margin potential.

No position (yet).