GE Vernova, Vertiv, and Bloom Energy Just Lost 10% to 24% in a Week. Here’s What Set Off the AI Power Sell-off.
GE Vernova (GEV -6.72%), Vertiv (VRT -4.14%), and Bloom Energy (BE -3.77%) have lost between 10% and 24% over the past week as investors rethink the sustainability of the artificial intelligence (AI) boom. The first wave of selling came on Oct. 14, when hotter-than-expected U.S. inflation pushed borrowing costs higher.
At the same time, weakness in AI financing, especially around CoreWeave‘s debt and its ability to fund expansion, raised concerns about how hyperscalers and their partners could finance expensive data center projects.
But with all three companies still benefiting from AI power demand, is the market overlooking their long-term growth opportunities?
Image source: Getty Images.
AI spending fears are overshadowing GE Vernova’s record backlog
GE Vernova’s business continues to show strength. Its third-quarter results showed a record $197 billion backlog, with orders growing 96% year over year. The company also raised its full-year 2026 revenue guidance to between $46.5 billion and $47.5 billion, suggesting continued demand for its power generation and electrification equipment.
GEV – GE Vernova
$773.62-$55.72 (-6.72%)
NYSE · As of 11:03 AM ET 11/10/26
That said, even with its valuation compressing to about 34 times forward price-to-earnings (P/E), it leaves investors with little room for disappointment. Meanwhile, another company is benefiting from a different part of the AI boom: keeping data centers running efficiently.
Data center cooling demand remains a strong growth driver for Vertiv
Vertiv has also been caught in the broader AI sell-off, with investors questioning whether hyperscalers will maintain their aggressive spending plans. The company’s growth prospects are tied to data centers, and any delays in customer projects could affect orders and revenue.
However, the company’s latest earnings tell a more encouraging story. Vertiv reported third-quarter 2026 revenue of around $4.3 billion, up 61% year over year. Organic orders rose by more than 100%, more than doubling without acquisitions, highlighting the strength of demand for its data center solutions.
VRT – Vertiv
$192.16-$8.31 (-4.14%)
NYSE · As of 11:02 AM ET 11/10/26
Still, like many companies in the AI build-out, the company faces risks around competition and execution. Plus, at about 21 times forward P/E, the stock looks reasonably valued, especially given its exposure to data center growth.
Onsite power demand offers another way to invest in AI
And finally, one last company is tackling a deeper problem: getting electricity to data centers in the first place. Bloom Energy was also among the names hit by the AI sell-off as investors questioned whether hyperscalers can generate attractive returns on their AI investments. The company also faced a post-earnings sell-off following its third-quarter results report on Oct. 22.
Bloom delivered record revenue of around $1.2 billion, up 138% year over year, and raised its full-year revenue guidance for the third time in 2026. Even so, investors focused on its cash flow. High capital expenditures (capex) and negative free cash flow (FCF) raised questions about how efficiently Bloom can fund its expansion.
BE – Bloom Energy
$186.58-$7.30 (-3.77%)
NYSE · As of 11:04 AM ET 11/10/26
Still, Bloom’s latest results suggest that demand is driving meaningful revenue growth. Its decision to raise that guidance to between $4.4 billion and $4.6 billion suggests management remains confident in the company’s outlook and growth prospects.
But Bloom still faces several risks, and its expansion requires significant investment. On top of that, its exposure to large data center customers and valuation of about 35 times forward P/E leave the stock vulnerable to any slowdown in AI spending, project delays, and even financing costs.
Could the sell-off be an opportunity for investors?
Despite the sell-off, GE Vernova, Vertiv, and Bloom Energy remain well positioned to benefit from growing demand for power and AI infrastructure.
The recent sell-off reflects growing concerns around AI spending, financing, and data center expansion. That said, GE Vernova, Vertiv, and Bloom Energy each have different ways to benefit from rising electricity demand, and their latest results suggest that their businesses remain strong.
For cautious investors, Vertiv looks safest, given its reasonable valuation and order growth. Meanwhile, GE Vernova fits investors who want a record backlog despite its valuation. At the other end, Bloom Energy is the high-risk, high-reward pick, given its negative FCF.
Ultimately, for long-term investors, the pullback could present an attractive entry point, especially for those looking to pick up these names at a discount.
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Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.