AI data center powerhouse attracts attention from Jim Cramer’s Charitable Trust

The GE Vernova investment move by Jim Cramer’s Charitable Trust represents a strategic bet on the growing demand for power generation amid AI infrastructure expansion and global electrification trends. Despite market volatility in 2025, including a 21% single-day drop following Chinese AI startup DeepSeek‘s emergence and tariff concerns, GE Vernova has rebounded as the market regained appreciation for power infrastructure’s growth potential. This power-focused spinoff from General Electric shows strong fundamentals with improving margins, significant order backlog, and pricing power driven by data center demand.

The big picture: Jim Cramer’s Charitable Trust is initiating a small position in GE Vernova, purchasing 45 shares at approximately $418.36 each, representing about 0.55% of the portfolio.

• GE Vernova, spun off from General Electric in April 2024, has experienced significant volatility in 2025, ranging from highs of $437 to briefly dipping below $300.
• Recent weeks have seen the stock surge as concerns over AI infrastructure spending and tariffs eased, with investors recognizing the long-term growth potential in power and electricity demand.

Business structure: GE Vernova operates through three distinct units – power, electrification, and wind – with a balanced revenue mix between equipment sales and services.

• The power unit represents the company’s largest franchise, specializing in energy solutions for customers.
• Electrification is the fastest-growing segment within the business.
• While currently unprofitable, the wind segment is showing improvement.

Key performance indicators: First-quarter results demonstrated robust growth across critical metrics.

• Revenue increased 15% year over year.
• Adjusted EBITDA improved by $300 million.
• Margins expanded by 1.7 percentage points over the previous year.

Demand outlook: CEO Scott Strazik notes the world is entering an accelerated electrification era, with the company’s order book demonstrating strong future demand.

• First-quarter orders totaled $10.2 billion, contributing to a substantial $123 billion total backlog.
• The company is largely sold out for 2026 and 2027, with 2028 market conditions expected to remain “higher for longer.”

Pricing dynamics: Insatiable power demand from AI applications and data centers is creating significant pricing leverage.

• The company maintains ability to raise prices for power generation equipment.
• Management expects pricing power to extend across the entire product portfolio.

Financial projections: Analyst expectations for GE Vernova continue to strengthen.

• The company has provided 2025 revenue guidance of $36-$37 billion.
• Consensus earnings estimates have increased to $6.85 per share for this year and $11.06 for 2026.

Investment rationale: The Trust is implementing a measured approach with this position.

• The initial price target is set at $460.
• The strategy accounts for potentially overbought market conditions.
• With 8-9% cash position, the Trust remains prepared to capitalize on potential market weakness.