Select Page
By David Prior | May 30, 2026 | Economy & Business, Featured, News & Analysis
GE Vernova (NYSE: GEV) and Constellation Energy (NASDAQ: CEG) are both emerging as major beneficiaries of the artificial intelligence-driven electricity boom, but each occupies a distinct role within the power ecosystem.
GE Vernova supplies the equipment needed to expand and modernize power infrastructure, while Constellation Energy directly generates and sells electricity to energy-hungry customers, including large data-center operators.
Submit a Press Release or News Tip
The explosive growth of AI and cloud computing infrastructure is serving as a key near-term driver of electricity demand, with hyperscale data centers significantly increasing electricity consumption worldwide.
These facilities require enormous amounts of electricity not only to power high-performance processors but also to operate advanced cooling systems that keep operations running continuously around the clock.
GE Vernova’s advantage lies in its role as a critical infrastructure provider, manufacturing gas turbines, grid equipment, wind turbines, and electrification technologies that utilities need as electricity demand accelerates.
On May 26, 2026, GE Vernova announced that its HA gas turbine fleet has exceeded 4 million commercial operating hours worldwide, with 128 units now operating across 21 countries since the first turbine came online in 2016.
The fleet generates approximately 74 gigawatts of capacity, enough electricity to power more than 55 million U.S. homes, underscoring the scale and reliability of the company’s technology.
Constellation Energy, as the largest producer of carbon-free electricity in the United States, owns a massive fleet of nuclear plants alongside natural gas, hydro, wind, and solar assets.
The company has secured a 20-year agreement with Microsoft tied to the restart of the Crane Clean Energy Center, and in February 2026 signed a 380 MW agreement with CyrusOne for a data center adjacent to the Freestone Energy Center.
Constellation also secured an exclusive arrangement for an additional 380 MW phase at the same site, with Texas regulators approving the related net metering application subject to conditions.
The Zacks Consensus Estimate for GE Vernova’s 2026 earnings per share indicates growth of 71.91% year over year, though that is followed by an expected decline of 19.94% in 2027, with a long-term earnings growth rate of 18%.
Constellation Energy’s 2026 EPS estimate implies growth of 25.24%, followed by a further increase of 16.8% in 2027, with the company carrying a stronger long-term earnings growth rate of 21.74%.
On valuation, GE Vernova shares trade at a forward 12-month price-to-sales ratio of 5.58x, compared to Constellation Energy’s more modest 3.23x on the same measure.
GE Vernova’s return on equity stands at 43.97%, well ahead of Constellation Energy’s 16.81%, indicating more efficient use of shareholder funds to generate profits.
Over the past three months, GE Vernova shares have risen 13%, while Constellation Energy shares have declined 12.5%, against an industry decline of 0.2%.
Both GEV and CEG carry a Zacks Rank of 3, designated as Hold, though GE Vernova’s stronger ROE and superior recent price performance make it the preferred pick between the two at present.
Share:
Tags:
David Prior is a senior reporter at the Foreign Policy Journal, covering everything from current affairs and global politics to stock market news and analysis.
© 2016 Foreign Policy Journal
Leave a Reply