NEW YORK, May 7, 2026 — Shares of GE Vernova Inc. pulled back sharply Thursday afternoon, retreating from a multi-day rally following news of a major Texas power project designed to support the booming energy demands of artificial intelligence data centers. The stock was trading at $1,048, a drop of $70.96 from Wednesday’s close, after opening at $1,107.81 and briefly touching $1,122.30 before reversing course.
The move marks a pause in what has been a stunning run for the company, which had posted three consecutive gains through Wednesday, according to MarketWatch, finishing at $1,118.96. That level remains below the 52-week high of $1,181.95 set on April 23. The stock has far outgrown its legacy industrial-equipment roots, now trading as one of Wall Street’s premier AI-power plays.
Texas Project Details
On May 5, Blue Energy and GE Vernova unveiled plans to develop a 2.5-gigawatt project combining nuclear and natural gas. The initiative will deploy GE Vernova Hitachi Nuclear Energy’s BWRX-300 small modular reactor, a compact and repeatable design, alongside GE Vernova’s HA gas turbines. Initial power delivery is targeted for 2030, with nuclear capacity potentially reaching 1.5 gigawatts by 2032, according to Investing.com.
The companies are pitching the hybrid approach as a faster path to power: gas-fired generation can come online relatively quickly, while the nuclear component provides long-term, carbon-free baseload capacity. Eric Gray, GE Vernova’s Power chief, noted that pairing the HA gas turbines with the BWRX-300 should accelerate “time to power,” as reported by World Nuclear News. A slot reservation agreement has been signed to secure manufacturing and delivery slots for two 7HA.02 gas turbines, set for 2029.
AI Energy Squeeze
The project underscores a critical challenge facing the AI industry: electricity demand is soaring, but supply constraints are tightening. According to Reuters, the largest U.S. data center operations dedicated to AI now consume upwards of 1 gigawatt each—enough to power as many as 850,000 homes. Yet turbine supply is limited, grid upgrades are slow, and regulatory red tape is delaying new connections.
GE Vernova’s first-quarter results highlighted the scale of the opportunity. Orders surged to $18.3 billion, a 71% organic increase, with gas-power backlog and slot reservations now standing at 100 gigawatts. The electrification unit alone booked $2.4 billion in data-center equipment orders—already surpassing last year’s total.
Outlook and Risks
In April, GE Vernova raised its 2026 revenue and margin targets, citing stronger demand from data centers and grid infrastructure. The company now expects 2026 revenue between $44.5 billion and $45.5 billion, with an adjusted EBITDA margin of 12% to 14%. Competitors are riding a similar wave: Siemens Energy recently lifted its 2026 forecast amid surging data-center orders, and both Mitsubishi and GE Vernova have announced plans to ramp up gas-turbine production, as reported by Reuters Events.
But the Texas project is still years from generating power. It requires a final investment decision, scheduled for 2027, as well as a construction permit from the U.S. Nuclear Regulatory Commission. Turbine deliveries, site preparation, and reactor construction all must align. In its latest quarterly filing, GE Vernova flagged numerous hurdles: supply chain disruptions, factory capacity constraints, rising costs, and a mountain of required approvals and permits.
Investors are left balancing two contrasting realities. Order books are swelling—demand is robust. But converting those orders into actual, cash-flow-generating projects is a slower, messier, and far more uncertain endeavor. Thursday’s sell-off suggests the market is beginning to price in that gap.
