GE Vernova GEV and Constellation Energy CEG are emerging as major beneficiaries of the artificial intelligence-driven electricity boom, but they are positioned differently within the power ecosystem. While GE Vernova supplies the equipment needed to expand and modernize power infrastructure, Constellation Energy directly generates and sells electricity to energy-hungry customers, including large data-center operators.
A key near-term driver of electricity demand is the explosive growth of artificial intelligence and cloud computing infrastructure. The rapid expansion of hyperscale, AI-powered data centers is 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. Unlike traditional sources of electricity demand, data centers require stable, round-the-clock power supply, accelerating investment in both renewable energy generation and grid reliability solutions.
Let us compare the stocks' fundamentals to determine which one is a better investment option at present.
Factors Acting in Favor of GEV Stock
GE Vernova’s advantage lies in its role as a critical infrastructure provider. The company manufactures gas turbines, grid equipment, wind turbines and electrification technologies that utilities and independent power producers need as electricity demand accelerates. The rapid buildout of AI data centers is forcing utilities to upgrade transmission networks and add new generation capacity, especially natural gas plants that can provide reliable baseload power. This trend is creating strong demand for GE Vernova’s gas turbines and grid solutions. In addition, the company benefits from a diversified business mix spanning power, renewable energy and grid modernization, giving it broad exposure to the long-term electrification theme.
On May 26, 2026, GE Vernova announced that its HA gas turbine fleet has exceeded 4 million commercial operating hours worldwide, highlighting the rapid growth and reliability of its advanced gas turbine technology. Since the first HA turbine began operating in 2016, the fleet has expanded to 128 units across 21 countries, generating about 74 gigawatts (GW) of capacity — enough electricity to power more than 55 million U.S. homes.
Factors Acting in Favor of CEG Stock
Constellation Energy, on the other hand, is more directly tied to rising power consumption. As the largest producer of carbon-free electricity in the United States, Constellation Energy owns a massive fleet of nuclear plants, as well as natural gas, hydro, wind, and solar assets. AI data centers require enormous amounts of stable, around-the-clock electricity, and nuclear power is increasingly viewed as one of the most dependable clean-energy sources capable of meeting that demand. This has positioned the company as a preferred power partner for hyperscalers and large technology companies seeking long-term electricity supply agreements.
The company has strengthened its long-term growth visibility through several large-scale contracting initiatives tied to data-center demand. These include a 20-year agreement with Microsoft tied to the restart of the Crane Clean Energy Center, and it continues to develop Powered Land solutions in ERCOT. In February 2026, the company signed a 380 MW agreement with CyrusOne for a data center adjacent to the Freestone Energy Center and secured an exclusive arrangement for an additional 380 MW phase, with Texas regulators approving the related net metering application subject to conditions.
How Do Zacks Estimates Compare for GEV & CEG?
The Zacks Consensus Estimate for GE Vernova’s 2026 earnings per share (EPS) indicates growth of 71.91% year over year, followed by an expected decline of 19.94% in 2027. GEV’s long-term (three to five years) earnings growth rate is 18%.
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The Zacks Consensus Estimate for Constellation Energy’s 2026 EPS implies growth of 25.24% and that for 2027 EPS indicates an increase of 16.8%. Constellation Energy’s long-term earnings growth rate is 21.74%.
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Valuation for GEV & CEG
GEV shares trade at a forward 12-month price/sales (P/S F12M) of 5.58X compared with CEG’s P/S F12M of 3.23X.
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GEV & CEG’s Return on Equity (ROE)
ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. GE Vernova’s current ROE is 43.97% compared with Constellation Energy’s 16.81%.
GEV & CEG’s Price Performance
In the past three months, shares of GE Vernova have risen 13%, while those of Constellation Energy have declined 12.5% compared to the industry’s decline of 0.2%.
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GEV or CEG: Which Is a Better Choice Now?
GE Vernova is benefiting from rising AI-driven electricity demand by supplying critical power, grid, and electrification infrastructure while strengthening its position through the rapid adoption of its advanced gas turbine technology. Constellation Energy is benefiting from surging AI-driven electricity demand by leveraging its large carbon-free power fleet and securing long-term energy supply agreements with major technology and data center companies.
Our choice at the moment is GE Vernova, given its stronger ROE and better price performance than Constellation Energy. Both GEV and CEG stocks carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).