GE Vernova $GEV ( ▲ 5.57% ) jumped Friday as markets connected the dots between the AI data center boom and a new Trump administration push that could force Big Tech to help fund new power generation.
Jefferies called GE Vernova the “clearest winner” of the plan, since it sells the natural-gas turbines that would be needed to build the next wave of power plants.
What’s driving the move
Reports say Trump is preparing a plan that would effectively push hyperscalers to “pay their own way” by bidding into long-term contracts that help finance new electricity generation capacity.
In simple terms: if AI needs more electricity, then Big Tech has to help build the plants.
Why GE Vernova benefits most
GE Vernova sits in the most direct “shovel seller” position in this entire trade.
If PJM (the key 13-state grid that includes Northern Virginia + Ohio data center hubs) needs new capacity, that likely means:
more natural gas plants get approved and built
turbine demand rises
pricing power improves for turbine suppliers
That’s why Jefferies sees GEV as the cleanest upside play if this policy becomes real.
Why utility stocks are getting hit instead
More supply = less scarcity pricing.
Jefferies said adding new PJM capacity is bearish for utilities that were positioned to profit from permanently elevated power prices, including:
Vistra $VST ( ▼ 7.74% )
Constellation Energy $CEG ( ▼ 11.08% )
Talen Energy $TLN ( ▼ 10.81% )
Those names spent heavily to gain exposure to PJM, essentially betting grid tightness would keep prices high. A major push to expand generation breaks that thesis.
Bottom line
This is a policy shift that rewards the infrastructure builders, not the power price beneficiaries.
If hyperscalers are forced to help fund new plants, GE Vernova is one of the most direct ways the market can express that trade.