GE Vernova (GEV) Stock Plunges 8.6% as AI Worries and Bearish Rating Converge

Key Takeaways

• GEV shares plummeted 8.6% Monday to close at $874.66, significantly trailing the S&P 500’s 0.5% decline
• AI industry leaders including Anthropic’s Dario Amodei advocated for reduced pace in AI advancement
• GLJ Research’s Gordon Johnson launched coverage with a Sell rating and $470 target—the lowest on the Street
• Johnson projects 2027 Ebitda of $7.4B, substantially below the $9.5B FactSet consensus forecast
• Related companies Eaton and Vertiv experienced similar 7.6% declines during the session

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Shares of GE Vernova tumbled 8.6% during Monday’s trading session on September 14, settling at $874.66. This decline sharply contrasted with the broader market’s modest 0.5% pullback in the S&P 500 and the Nasdaq Composite’s 0.6% retreat.

GE Vernova Inc., GEV

The stock faced simultaneous headwinds from two distinct sources: mounting anxiety surrounding artificial intelligence development trends and a notably bearish analyst initiation suggesting potential downside exceeding 50%.

The AI-related concerns originated from a public essay by Dario Amodei, chief executive of Anthropic, who contended that AI technological progress is outpacing the research community’s ability to safely manage it. His proposal included decelerating frontier AI development and implementing independent safety oversight within AI research facilities.

The sentiment found support from prominent industry figures including Sam Altman of OpenAI, Elon Musk, and Demis Hassabis from Google DeepMind, who expressed varying degrees of agreement with the proposed measures.

This development carries significant implications for GEV, as its power equipment segment derives substantial demand from AI data center infrastructure. A deceleration in AI development would naturally translate to reduced requirements for the electrical systems and infrastructure that GE Vernova manufactures.

Prior to Monday’s session, GEV had climbed 46% year-to-date in 2026 and posted an impressive 324% surge over the preceding two-year period.

Bearish Analyst Call Compounds Decline

Amplifying the broader market concerns, Gordon Johnson of GLJ Research initiated coverage on GE Vernova with a Sell rating accompanied by a $470 price target. This projection sits approximately 50% beneath Monday’s closing price and represents a significant departure from consensus, standing more than $300 below the second-lowest Wall Street target.

Johnson’s thesis centers primarily on valuation metrics. GEV currently trades at approximately 26 times his projected 2027 Ebitda figure. By comparison, the S&P 500 trades around 13 times earnings. His valuation framework applies a 14 times multiple to his proprietary Ebitda projection.

The analyst anticipates earnings will fall short of consensus expectations, attributing this partly to the pricing dynamics of power turbines scheduled for 2027 delivery, which were secured under contracts when pricing remained subdued. His $7.4 billion 2027 Ebitda forecast stands considerably below the FactSet consensus estimate of $9.5 billion.

Johnson’s perspective represents a significant deviation from Wall Street consensus. Approximately 80% of analysts tracking GEV maintain Buy ratings, substantially exceeding the typical 55% to 60% Buy-rating ratio observed across S&P 500 constituents. The consensus price target clusters around $1,240.

Broader Sector Weakness Evident

GEV’s decline didn’t occur in isolation. Eaton and Vertiv, fellow providers of electrical infrastructure equipment serving AI facility demand, each retreated approximately 7.6% during Monday’s session.

The selloff materialized just days following a Friday price target increase from Jefferies analyst Julien Dumoulin-Smith, who elevated his GEV target to $1,185 from $1,155. His rationale highlighted expanding service revenue streams from a growing base of installed power generation equipment, which propelled the stock 3.6% higher that session.

Despite Monday’s decline and Johnson’s contrarian outlook, the consensus analyst price target for GE Vernova remains anchored around $1,240, substantially above both the current trading level and GLJ Research’s bearish projection.

The post GE Vernova (GEV) Stock Plunges 8.6% as AI Worries and Bearish Rating Converge appeared first on Blockonomi.

Source: https://blockonomi.com/ge-vernova-gev-stock-plunges-8-6-as-ai-worries-and-bearish-rating-converge/