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Tag: GEV
Why GEV Stock Is Dropping Sharply Today
GE Vernova (GEV) is sinking 22% today after Chinese start-up DeepSeek reportedly unveiled AI models that were produced using old chips and much less computing power than the AI offerings of OpenAI and Meta (META). However, DeepSeek’s models are at least as proficient as those of OpenAI and Meta, according to multiple reports.
GEV provides electrical equipment used by power plants and wind turbines.
Why DeepSeek’s News Is Pulling Down GEV
The Chinese tech firm reportedly used about 50,000 of Nvidia’s (NVDA) H100 chips, unveiled back in 2022, to develop its AI models. This news is leading to speculation that fewer of Nvidia’s latest, power-hungry chips will be utilized to create AI in the future, while U.S. data centers may not expand as rapidly as previously thought.
It was previously believed that electricity production had to climb a great deal to power both chip manufacturing and data centers. But given the doubts that have now arisen about the demand for chips and the proliferation of data centers going forward, the Street is worried that there will be much less need than previously expected for electricity over the long term. As a result, GEV is tumbling today.
While we acknowledge the potential of GEV, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.
There are several possible reasons why GEV stock is dropping sharply today:1. Poor earnings report: If General Electric (GEV) recently released a disappointing earnings report, investors may be selling off their shares in response to the company’s underperformance.
2. Economic downturn: If there is a broader economic downturn or market correction, GEV stock may be dropping along with other companies in the same industry or sector.
3. Negative news: If there is negative news surrounding GEV, such as a scandal, lawsuit, or regulatory investigation, investors may be selling off their shares in response to the uncertainty.
4. Analyst downgrades: If analysts have recently downgraded their ratings on GEV stock, this could be causing a drop in the stock price as investors follow their recommendations.
It is important to conduct further research and analysis to determine the specific reason for the drop in GEV stock and to make informed decisions about whether to buy, hold, or sell shares in the company.
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The “Easy Money” Has Been Made in GE Vernova (GEV) Stock, Says Guggenheim
Wall Street investment bank Guggenheim Partners is sounding the alarm on power-generation company GE Vernova (GEV), warning that the “easy money” has been made with the stock.
Joseph Osha, a five-star rated analyst at Guggenheim, says it’s now time for investors to take profits in GEV stock after it has risen more than 200% in the last 12 months. In a research note, Osha lowered his rating on the stock to Hold from Buy and withdrew his previous $380 target for the share price.
The analyst says he is moving to the sidelines with GEV stock after its incredible run over the past 12 months following its spinoff from General Electric (GE). While GEV stock has performed better-than-expected since its market debut last spring, Osha says that additional gains are “less likely” moving forward.
Strong Performance
GEV stock has ripped higher as management has been effective in running the business, with profit margins improving and new orders growing at a faster clip than sales. The strong performance by both management and the stock has surprised even the most bullish of analysts.
However, the rapid rise in the share price has pushed the valuation on GEV stock higher. GE Vernova’s stock currently trades for about 26 times earnings expected in 2026, more than double the 10.4 times it traded at last spring.
Osha says that the skyrocketing share price and valuation make GEV stock less attractive in the near-term and encourages investors to look for other opportunities in the market.
Is GEV Stock a Buy?
The stock of GE Vernova has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 16 Buy and three Hold recommendations assigned in the last three months. The average GEV price target of $423.88 implies 0.35% downside risk from current levels.
Guggenheim, a leading financial firm, recently issued a report stating that the “easy money” has already been made in GE Vernova (GEV) stock. The report highlights that the stock has seen significant gains in recent months, but may be approaching a point of diminishing returns.According to Guggenheim, investors who have already made profits in GEV stock may want to consider taking some profits off the table and re-evaluating their investment thesis. The firm notes that while GEV may still have potential for future growth, the stock may be entering a period of consolidation or correction.
Guggenheim’s report serves as a reminder to investors to always be mindful of their risk tolerance and investment goals. While GEV may have performed well in the past, it is important to stay informed and continuously reassess one’s investment strategy.
As always, it is recommended that investors conduct their own research and seek advice from a financial advisor before making any investment decisions. Stay informed, stay vigilant, and stay ahead of the market trends.
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#Easy #Money #Vernova #GEV #Stock #GuggenheimIs this Nvidia-Beating Energy Stock (GEV) a Must-Buy Before Earnings?
Energy transition and the nuclear energy standout GE Vernova GEV has skyrocketed 190% since its April 2024 IPO.
GE Vernova jumped to fresh all-time highs on Friday heading into its Q4 earnings release on Wednesday, January 22.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Wall Street flocked to the GE spinoff for its impressive earnings growth and ability to expand alongside key megatrends. GE Vernova provides investors the chance to add exposure to nuclear energy, electrification, natural gas, the artificial intelligence boom, and broader infrastructure spending.
GE Vernova is a pure-play energy transition company growing alongside electrification, nuclear energy expansion, natural gas, and beyond. GEV boasts that its customers generate roughly 25% of all the electricity in the world via GE Vernova’s installed base of technologies.
GE Vernova reports via three business segments: Power, Wind, and Electrification. GEV’s steam power unit has provided nuclear turbine technologies and services for all reactor types for decades. GEV’s Hitachi Nuclear Energy division is a leading provider of advanced nuclear reactors, fuel, and nuclear services.
The U.S. aims to triple nuclear energy capacity by 2050 as it attempts to wean itself off fossil fuels. Microsoft, Amazon, and other technology titans made nuclear energy deals in 2024 to secure reliable power to fuel the AI arms race.
Zacks Investment Research
Image Source: Zacks Investment ResearchGE Vernova is at the forefront of next-generation small modular nuclear reactor (SMR) technologies. The U.S. Department of Energy selected GE Vernova to help build out a key part of the next-gen nuclear and uranium industry.
GEV also critically provides investors long-term exposure to natural gas. Natural gas will continue to play a massive role in the U.S. and around the world as technology companies and everyone else look for reliable energy while attempting to shutter coal plants.
Nuclear energy powerhouse Constellation Energy CEG announced on January 10 a $26.6 billion cash-and-stock deal to buy natural gas and geothermal titan Calpine.
Beyond nuclear and natural gas, GE Vernova’s growth pipeline includes electrification software, power conversion, energy storage, grid solutions, and more. GE Vernova is streamlining its operations, including its struggling offshore wind business.
Furthermore, GE Vernova boosted its bull case when it declared its first dividend on December 10, which will be payable in the first quarter of 2025. GEV approved an initial $6 billion share repurchase plan as well.
As investors eagerly await the upcoming earnings report from Nvidia, another energy stock has been making waves in the market. GEV, a lesser-known company in the energy sector, has been gaining traction and some analysts are calling it a potential game-changer.With a focus on sustainable energy solutions and a strong track record of innovation, GEV has been positioning itself as a serious competitor to industry giants like Nvidia. The company’s recent performance has been impressive, with revenue growth and profit margins exceeding expectations.
As we approach the earnings release, many investors are wondering if now is the right time to buy GEV stock. Some experts believe that GEV’s strong fundamentals and growth potential make it a compelling investment opportunity, especially before the earnings report.
However, it’s important to note that investing in stocks, especially in the energy sector, comes with inherent risks. While GEV may have the potential to outperform Nvidia in the long run, there are no guarantees in the stock market.
Ultimately, the decision to buy GEV stock before earnings will depend on your own risk tolerance and investment strategy. It’s always a good idea to do your own research and consult with a financial advisor before making any investment decisions.
So, is GEV a must-buy before earnings? Only time will tell. Stay tuned for the latest updates and analysis on this exciting energy stock.
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