GE Vernova Has Something Nvidia Needs Under a Democratic Congress
Industrial stocks are sliding on fears of a Democratic sweep, yet one power equipment maker keeps stacking orders while its stock gets cheaper. This investor sees the selloff as a buying window, and the reasons go beyond politics.
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I added more GE Vernova (NYSE:GEV | GEV Price Prediction) this week, and I plan to keep adding. The stock fell 13.22% over the past week and 25.09% over the past month, ending near $774.52. Barron’s linked the selloff in industrial stocks to a Democratic sweep. Meanwhile, the order book keeps growing. When the business gets stronger and the price gets cheaper, I buy more.
Why I Keep Coming Back
Every AI chip that Nvidia (NASDAQ:NVDA) ships needs electricity. Someone has to generate that power and push it through substations. A single data center can use over a gigawatt, equivalent to powering approximately 750,000 homes. GE Vernova builds the gas turbines that generate that power. It also builds the transformers, switchgear and high-voltage equipment that deliver it. The high-voltage substation layer has become a supply bottleneck for Nvidia, and GE Vernova makes the equipment that layer runs on (we covered seven of these suppliers, from power to cooling, in a free report you can grab here).
Three Numbers That Keep Me Adding
The first is backlog. It grew from $150B at the end of 2025 to $176B in Q2 2026 to $197B in Q3. Management expects it to pass $200B in Q4. Third-quarter orders reached $29.30B, up 96% organically, and Gas Power has already sold multiple delivery slots for 2032. That kind of long-range visibility matters to me in a retirement portfolio.
The second is cash. Free cash flow rose from $4.8B in Q1 to $5.1B in Q2 to $5.4B in Q3. Management raised full-year guidance to $16B to $17B, up from $11.5B to $12.5B. The company holds $16.8B in cash. It doubled the quarterly dividend to $0.50 and doubled the buyback program to $20B.
The third is margins. Power reached a 21.4% EBITDA margin and Electrification hit 19.1%. Third-quarter gas equipment orders carried prices more than 20% above fourth-quarter 2025 equipment orders. Rising prices on a growing backlog will feed earnings for years.
Why GE Vernova Gets My Money Over Eaton and Quanta
Eaton (NYSE:ETN) sells into the same data center trend. Its third-quarter free cash flow fell 11.85% to $1.034 billion, and it held only $528 million in cash. Its long-term debt rose to $18.5 billion from $8.8 billion. GE Vernova will pay for its Trench deal with debt and cash in equal parts and expects to stay below a 1x debt-to-adjusted-EBITDA ratio.
Quanta Services (NYSE:PWR) installs the power system well. Still, its quarterly dividend is $0.11 and its 2026 free cash flow guidance is $2.50 billion to $3.00 billion. The company that makes the equipment is the one I’d rather own.
What Could Hurt This Position
Politics already hit the stock, and wind remains the weak spot. Management expects Wind EBITDA losses of $400M to $500M this year. Electrification orders fell 9% organically, and the ~$9.0B Trench deal still needs regulatory approval.
None of that changes my view, because data center power demand doesn’t depend on which party controls Congress. The Electrification equipment backlog grew to $42.2B, up 60%, and North American equipment orders doubled year-over-year. U.S. electricity demand has grown 2.1% per year, on average, over the last five years.
Why I’m Still Buying
Management expects at least 130 GW of gas equipment under contract by year-end. It also says “every gigawatt of HAs” will generate $0.5 billion of high-margin services revenue over the first 20 years. CEO Scott Strazik calls this “the early stages of this electricity investment supercycle.” Every new data center needs power from someone, and I’m building my stake in the company that sells it.
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Alex Sirois is a financial writer with experience spanning both retail and institutional investing. He has written for InvestorPlace and held roles at BNY Mellon and Bernstein, giving him a perspective that bridges Main Street portfolios and Wall Street analysis.
Alex holds an MBA from George Washington University and has built his career across multiple industries, including e-commerce, education, and translation — a breadth of experience that informs how he breaks down complex financial topics for everyday investors. His writing is conversational, actionable, and grounded in long-term, buy-and-hold investing principles.
At 247 Wall St., Alex focuses on delivering analysis that is both accessible and useful, with a clear emphasis on helping readers make more informed decisions with their money.
