General Electric is back to outperforming the market, sort of. The original conglomerate is gone, but its three-way breakup has turned out to be one of the best trades of the decade. Since GE announced the split in late 2021, investors who held all three spinoffs are up more than 600 percent, beating the S&P 500, Nvidia, and even Bitcoin.
The surprise winner is GE Vernova, the energy business that many once viewed as the weakest link.
From Green Dreams to Gas Turbine Reality
When Vernova was spun out in 2024, expectations were low. Management talked up renewables and framed the business as a clean-energy future play. Investors were not impressed.
What actually happened is very different. Vernova is now selling massive natural gas turbines, some literally the size of houses, at higher and higher prices. Utilities cannot build power fast enough, and Vernova’s order backlog now stretches close to the end of the decade.
AI data centers get much of the credit for soaring electricity demand, but analysts say the bigger driver is electrification itself. Homes, offices, and industrial buildings are switching from oil and gas systems to electric ones. Data centers did not start the fire. They just poured gasoline on it.
The Numbers Are Doing the Talking
Since the spinoff, Vernova shares are up roughly 400 percent. Last week, management issued blowout guidance and the stock jumped 16 percent in a single day. Analysts at Bank of America still see upside ahead, while JPMorgan estimates wind power accounts for less than 1 percent of the company’s valuation.
Translation: this is not a renewables story. It is a power demand story.
Natural gas remains the fastest way for utilities to meet surging electricity needs, and Vernova sits at the center of that buildout.
A Breakup That Finally Worked
GE HealthCare has lagged due to China trade pressures and cautious hospital spending. GE Aerospace has exceeded expectations thanks to booming air travel and massive jet engine backlogs.
But Vernova is the real shocker. Once seen as the ugly duckling, it is now the standout performer, riding a once-in-a-generation shift in how energy is produced and consumed.
The takeaway: sometimes the least loved spinoff ends up doing the heavy lifting. In GE’s case, the future of electrification is being powered by old-school gas turbines, not glossy green slogans.