AI Power Infrastructure Stocks Face Sell-off Despite Strong Financial Performance
GE Vernova (GEV), Vertiv (VRT), and Bloom Energy (BE) have experienced significant stock price declines of 10% to 24% over a single week. This sell-off is driven by investor concerns regarding the sustainability of AI spending, rising borrowing costs due to inflation, and potential financing challenges for large-scale data center projects. Despite the market volatility, the underlying fundamentals for these companies remain robust. GE Vernova reported a record $197 billion backlog and raised its 2026 revenue guidance, while Vertiv saw third-quarter revenue surge by 61% driven by massive demand for data center cooling solutions. While macro fears persist, these firms continue to benefit from the structural demand for power generation and electrification required by the AI boom.