Jim Cramer on Tesla and Other Stocks

2. GE Vernova Inc. (NYSE:GEV)

Number of Hedge Fund Holders: 92

Cramer shed light on GE Vernova Inc.’s (NYSE:GEV) recent earnings report and emphasized the importance and need for fossil-based fuel.

“When you study GE Vernova’s fantastic quarter and it was, and you read between the lines, the numbers that shine were certainly not nuclear, definitely not wind. No, the strength came from electrification and the power of natural gas. You may be reluctant to invest in it. You might think who cares but you need to know how vital all this fossil fuel technology is to the growth of Magnificent 7. Because of these data centers, because NVIDIA’s chips burn so darn hot, and they use an insane amount of electricity, we simply need more fuel fossil-based fuel.”

GE Vernova (NYSE:GEV) operates in the energy sector, focusing on a range of solutions related to electricity generation, transfer, orchestration, conversion, and storage. On October 23, it shared its third-quarter results, highlighting significant growth in orders and revenues. During this period, the company secured orders totaling $9.4 billion, marking a 17% increase on an organic basis.

This growth was primarily fueled by a 28% rise in services, with all segments showing strength, complemented by equipment growth in Power and Electrification. Revenue for the quarter reached $8.9 billion, an 8% increase. The financial performance showed expanding margins in the Power, Electrification, and Onshore Wind segments, although these gains were somewhat offset by contract losses in Offshore Wind. Its cash flow saw a substantial improvement, increasing by approximately $0.9 billion.

Focusing on GE Vernova’s (NYSE:GEV) Electrification segment, orders amounted to $2.5 billion, also up 17% organically, driven by heightened demand for grid equipment and services. Revenue for this segment reached $1.9 billion, a 22% growth fueled by contributions from Grid Solutions and Power Conversion. The Power segment’s orders reached $5.2 billion, a 34% organic increase, while revenues totaled $4.2 billion, marking an 8% rise, driven by increased demand for Gas Power services and equipment.