2 Industrial Stocks Worth Watching
Written by Rick Orford for The Motley Fool -> GE Vernova and Vertiv offer electricity and cooling, which are vital to AI. GE Vernova sells turbines and nuclear services that generate power, and it provides grid equipment that carries it to where it needs to go. Vertiv has work
GE Vernova and Vertiv offer electricity and cooling, which are vital to AI.
GE Vernova sells turbines and nuclear services that generate power, and it provides grid equipment that carries it to where it needs to go.
Vertiv has worked closely with Nvidia to provide cooling equipment as chips run hotter.
Two industrial companies, GE Vernova (NYSE: GEV) and Vertiv (NYSE: VRT) , offer what artificial intelligence (AI) cannot function without: electricity and cooling. While the flashiest names in AI grab the headlines, the safer bet often sits a layer down. Neither stock is cheap; on any meaningful dip, however, these are industrial names worth considering.
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GE Vernova was spun out of General Electric in 2024 and now builds machinery that moves electricity. One sector sells turbines and nuclear services that generate power, while another provides grid equipment that carries it to where it needs to go.
Over the last 52 weeks, as I write this, the stock has traded between $479 and $1,182. Over the same period, it has gained 93%, and it's up 619% since the company went public in 2024. Investors of all types have come around to the idea that AI lives or dies on power.
In the first quarter of 2026, the company reported revenue rising 16% to $9.34 billion, while net income jumped from $264 million to $4.75 billion from the same period a year earlier. These are amazing results and for the most part aren't repeatable as about $4.5 billion came from a one-time gain tied to the company's acquisition of the remaining 50% stake in Prolec GE, a grid equipment supplier. Management raised full-year revenue guidance to a range of $44.5 billion to $45.5 billion, signaling confidence in demand.
