Non-tech stock to hugely benefit from the AI boom
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While investors are focused on technology stocks reaping from the booming artificial intelligence (AI) sector, a market strategist has identified an outsider equity likely to benefit from the AI wave. Specifically, GE Vernova (NYSE: GEV), an energy equipment manufacturer, is considered a possible non-tech equity likely to see traction thanks to the company’s potential to meet AI electricity demands, Roy Mattox, a chief market strategist, noted in an X post on September 24. According to the strategist, as the global demand for AI and data centers continues to surge, so does the need for electricity. In his view, AI’s energy consumption could grow several times in the coming decade, driven by advanced AI technologies. GE Vernova, a leading energy and power infrastructure solutions provider, is uniquely positioned to capitalize on this demand. “AI and power needs are real. We will need enormous increases in electricity to power AI and data centers. GEV is a leader,” the expert said. Mattox sees GE Vernova’s recent stock price surge as just the beginning. While the stock has rallied significantly, gaining nearly 30% in the past three months alone, Mattox believes there’s more upside. GE Vernova stock price analysis chart. Source: Roy Mattox He pointed out that investors should watch for a possible pullback or consolidation before jumping in. Stocks like GE Vernova, Mattox says, often exhibit short-term pauses before breaking out further—a pattern reminiscent of Square’s rapid rise from $17 to $100 in 2017. The expert added that long-term investors should pay close attention to GE Vernova’s earnings, projected growth, and industry tailwinds. The stock currently boasts strong EPS growth and an upward trend in relative strength compared to its peers. For the quarter ending June 2024, the company recorded an EPS of 1.02, beating analysts’ estimate of 0.74. Although the energy firm’s…
Filed under: News - @ September 24, 2024 5:21 pm