GE Vernova has formed a joint venture with LS Electric to strengthen its position in the high-voltage direct current sector. Announced at the CIGRE 2026 event in Paris, the partnership will focus on South Korea's voltage source converter-based HVDC projects, which are crucial for transmitting renewable energy from the southwestern region to greater Seoul. The venture combines GE Vernova's VSC-HVDC technology with LS Electric's local capabilities and market presence. The companies also plan to pursue HVDC opportunities in other global markets. The move aligns with GE Vernova's strategy to capitalise on growing power infrastructure demand. During Q2, the company's Power orders jumped 135% year-over-year, whilst Electrification revenue grew 68%. However, the joint venture faces execution risks and may take time to generate meaningful revenue.

Jim Cramer defended GE Vernova on CNBC, arguing the industrial power generation equipment maker isn't a good short despite broader negativity around the data centre sector. He cited the company's stable nuclear reactor delivery timelines and exposure to AI infrastructure buildout. GE Vernova reported strong Q2 results with $6.4 billion in working capital benefit from customer down payments, pushing free cash flow to $5.1 billion, up 2,532% annually. The company raised its full-year cash flow guidance to $11.5 billion-$12.5 billion from $6.5 billion-$7.5 billion. However, Q2 earnings per share of $2.47 and EBIT of $653 million both missed analyst estimates. Hedge fund interest declined, with 106 out of 1,006 funds holding stakes in Q2, down from 118 out of 1,022 in Q1.

Morgan Stanley equity strategist Michelle Weaver estimates a potential 38-gigawatt power shortfall for AI data centres through 2028. This gap — equivalent to powering several dozen major cities — is driving AI facility operators to develop their own power solutions. GE Vernova leads this opportunity through natural gas power turbines. The company secured $16.7 billion in orders last quarter, up 134% year over year, predominantly from this division. GE Vernova projects approximately $46 million in total 2026 revenue, compared with $38 billion last year. Global Market Insights forecasts the natural gas power turbine market will grow over 11% annually through 2035, reaching nearly $65 billion. Additionally, J.P. Morgan analysts expect $5.8 trillion in global grid upgrades by 2035, benefiting GE Vernova's nuclear power, energy storage, and grid technology divisions.