GE Vernova Holds an $176 Billion Backlog, Yet Wall Street Is Selling: What Investors Should Know.

GE Vernova (GEV -1.00%), the former energy division of General Electric (GE -1.19%) that was spun off as a stand-alone company in 2024, has soared since its market debut. Its stock opened at $143 on the first day, and it's trading at around $994 as of this writing. The rapid growth of the power-hungry cloud, artificial intelligence (AI), and data center markets generated strong tailwinds for GE Vernova's business, and its backlog swelled 37% year over year to $176.3 billion in the second quarter of 2026. Yet over the past month, its stock dipped by about 5% while the S&P 500 rose by 3%. Let's see why it lost momentum and whether that pullback represents a good buying opportunity for long-term investors. Image source: Getty Images. How fast is GE Vernova growing? GE Vernova operates three main segments: Power (55% of its 2025 orders), Electrification (33%), and Wind (13%). The Power segment develops gas turbines for combined-cycle plants, steam turbines for coal, gas, and nuclear plants, and provides services for nuclear power plants. The Electrifification segment sells transformers, breakers, substations, high-voltage direct current systems, along with automation, optimization, and protection services for electrical grids. The Wind segment primarily sells onshore and offshore wind turbines. GE Vernova's total orders grew 34% organically in 2025, accelerating from its 7% growth in 2024. Its Power and Electrification orders surged 51% and 23%, respectively, as more utilities expanded their infrastructure to support the growing cloud and AI markets. That robust growth offset the slower growth of its Wind segment, which grappled with supply chain issues. ExpandNYSE: GEVGE VernovaToday's Change(-1.00%) $-9.98Current Price$990.32Key Data PointsMarket Cap$266BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Day's Range$963.54 - $1013.2052wk Range$530.16 - $1195.94Volume2.2MAvg Vol2.8MGross Margin20.16%Dividend Yield0.17% In the first half of 2026, its total orders grew 89% year over year. Its Power and Electrification orders rose 99% and 131%, respectively, easily offsetting its 11% decline in Wind orders. For the full year, it expects its revenue to rise 19% to 22%, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to expand from 8.4% to 12%-14%. Why did GE Vernova's stock pull back? GE Vernova's business is firing on all cylinders, but a few issues weighed down its stock after its second-quarter report on July 22. First, its adjusted EBITDA and EPS missed Wall Street's expectations as it ramped up spending to increase its capacity and recognized additional losses from the Wind division's offshore and onshore segments. Second, GE Vernova was already priced for perfection. Therefore, any perceived imperfections would drive its stock lower. With an enterprise value of $255 billion, GE Vernova still isn't cheap at 40 times this year's adjusted EBITDA. However, I believe the AI-driven growth potential of its Power and Electrification businesses justifies that higher valuation and makes it a great buy today.Read NextAug 6, 2026 •By Lyle DalyThe Largest Industrials Companies by Market Cap in August 2026Aug 6, 2026 •By Lee SamahaHere's Why This AI-Related Power Company's Stock Declined in JulyAug 2, 2026 •By Lee SamahaElon Musk's AI Data Centers Need So Much Power He's Buying Gas Turbine Companies -- Who Else Benefits?Aug 1, 2026 •By Leo Sun$5,000 in GE Vernova at Its 2024 Low Would Be Worth This Much NowAug 1, 2026 •By James BrumleyScott Strazik's GE Vernova Has a $176 Billion Backlog.

So Why Did Wall Street Sell the Stock?Jul 30, 2026 •By Sara AppinoGE Vernova vs. NuScale Power: Which Industrials Stock Is a Better Buy in 2026?About the AuthorLeo Sun is a contributing Motley Fool stock market analyst who has worked with the company since 2013, covering technology, consumer goods, industrial, and financial sectors. He became a self-made millionaire by age 40 through long-term investing, crediting lessons from Warren Buffett and Peter Lynch. Leo is a regular guest on CNBC Asia providing stock analysis on Chinese technology companies, including Tencent, Baidu, and Alibaba. He previously wrote for InvestorGuide and holds a bachelor’s degree in English from the University of Texas at Austin.TMFSunLionX@TMFSunLionStocks MentionedGE VernovaNYSE: GEV$990.32(-1.00%)-$9.98Motley Fool Stock Advisor’s Latest PickGet Access---% Avg ReturnGE AerospaceNYSE: GE$370.08(-1.19%)-$4.47*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.