Key Takeaways
- GE Vernova fell 4% today after SoftBank booked a $3.7 billion charge on power equipment for its US data center sites.
- Most of that charge is money SoftBank already paid, and any turbine slots it gives up should find new buyers.
- Bloom Energy, Vertiv, Oklo and NuScale Power fell too, though SoftBank isn’t scaling back Ohio.
- Analysts expect GE Vernova’s earnings to more than double by 2028, and its forward P/E sits near a one-year low.
GE Vernova (GEV) fell 4% today after SoftBank booked a $3.7 billion charge on power equipment for its Ohio data center campus and other US sites.
Bloom Energy (BE) and Vertiv (VRT), which also sell into data center build-outs, each fell 3%. Oklo (OKLO) and NuScale Power (SMR) each dropped 4%, though the Ohio gear was for a gas plant.
SoftBank paid early, and it’s paying for it
CFO Yoshimitsu Goto said SoftBank had rushed to lock down the equipment but isn’t planning to scale back the Ohio project, which is undergoing “a thorough reassessment,” including how it buys equipment.
SoftBank said in May it had reserved turbines from makers including GE Vernova for the Ohio gas plant.
But $2.9 billion of the charge is non-refundable money SoftBank had already paid, and GE Vernova says deposits on its orders and slot reservations are non-refundable too. So if SoftBank gives up any slots, I’d expect GE Vernova to keep the deposit and sell them again.
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Turbines are still hard to come by
GE Vernova had 122 gigawatts of gas equipment under contract at the end of the third quarter and raised its year-end goal to at least 130 gigawatts. Analysts expect normalized EPS to climb from $15.68 this year to $37.13 in 2028:
Nothing in SoftBank’s charge makes me expect cuts, since the Ohio project is still going ahead.
Bloom and Vertiv ride the same demand. Bloom raised its 2026 revenue guidance for the third time on Oct. 22, to $4.4-$4.6 billion, and Vertiv’s organic orders more than doubled in the third quarter. If more AI builders pause to reassess, Bloom’s guidance and Vertiv’s orders would show it first.
Investors were already nervous
At the last close, GE Vernova traded at 36x forward earnings, against a 54x average over the past year and a low of 33x on Nov. 5:
Today’s drop takes it to about 34x. The bigger risk is cash: $5.3 billion of GE Vernova’s $5.4 billion of third-quarter free cash flow came from working capital, mostly customer down payments, which would slow along with orders.
Bottom line: SoftBank’s rethink is SoftBank’s problem first, and GE Vernova looks like a buy on fear at this price. Its fourth-quarter report in late January will show whether contracted gas reached that 130-gigawatt goal.
So what is GE Vernova stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
