The AI Boom Has a Power Problem. These Industrial Stocks Are Cashing In.
Yahoo Finance ·
It's no secret that the booming demand for artificial intelligence (AI) applications is straining AI data centers' and hyperscaler owners' abilities to secure long-term power. That applies to the existing data centers and those being built as part of a multiyear investment cycle. There are many ways to play this theme; let's take a brief look at a couple of them. The chart below shows just how well the stocks have performed in 2026. It's no coincidence that they have outperformed, as AI investment commitments have continued to surprise on the upside. Consequently, the market had also priced in higher power demand. The startling turnaround in the fortunes of power-related companies is best seen in gas power turbine, electrification, and wind power company GE Vernova ( GEV 1.87% ) . Once the problem child in the former General Electric's portfolio of companies, its exposure to the need for AI data centers to secure power (heavy-duty gas turbines) and electrification equipment to connect them to the grid led it to briefly surpass the market cap of the strongest business of the former GE, GE Aerospace , earlier this year. From struggling to generate gas turbine order growth in 2015 to 2020, the company now has a $76 billion backlog (compared to $38 billion in overall sales in 2025) and is even able to sign slot reservation agreements (SRAs), whereby customers are willing to pay cash up front to secure slots for gas turbine equipment.
DYAX Investor Sentiment
Bullish (Long) 57% · Bearish (Short) 43%
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