GE Vernova vs. American Electric Power: Which Power Stock Has the Edge?

Both GEV and AEP are positioned to benefit from surging electricity demand, AI data centers, and the massive U.S. grid expansion.

Tanvi Sarawagi

4 min read

GE Vernova GEV and American Electric Power AEP are closely aligned with the long-term expansion and modernization of the U.S. power grid, although they participate in different parts of the electricity value chain. As electricity consumption accelerates — particularly from AI, data centers and other energy-intensive industries — the need for greater transmission capacity and a more resilient grid is becoming increasingly important. This creates a favorable structural backdrop for both companies.

GE Vernova benefits primarily as a technology and equipment provider. Its portfolio includes high-voltage transmission equipment, grid automation, electrification technologies and other solutions that help utilities modernize aging infrastructure and connect new generation resources to the grid. American Electric Power, meanwhile, benefits as a major grid operator and utility, with one of the largest transmission networks in the United States. The company is investing in expanding and upgrading this network to support rising electricity demand, improve reliability and accommodate the changing generation mix.

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 latest CIGRE 2026 announcement highlights its positioning to benefit from rising electricity demand driven by AI, data centers and industrial electrification. The company is offering integrated solutions across transmission, grid automation, energy storage and electrification to help utilities expand capacity and improve reliability. This creates a strong growth opportunity for GEV as utilities and large power users increase spending on grid modernization and infrastructure, supporting long-term demand for its equipment, software and services.

GEV delivered a strong second-quarter 2026 performance, with orders rising 88% organically to $24.2 billion and backlog reaching $176 billion, driven by strong demand across Power and Electrification. Revenues increased 22% to $11.1 billion. Gas turbine backlog and reservations also increased to 116 GW, with GEV now expecting at least 125 GW under contract by year-end. Data-center-related Electrification orders have surpassed $5 billion year to date, more than double the 2025 total. Given this momentum, GEV raised its 2026 revenue and free cash flow outlook, highlighting strong demand from power generation, grid infrastructure and AI/data centers.

Factors Acting in Favor of AEP Stock

American Electric Power has a stable earnings base of more than 5.6 million customers across 11 states, with approximately 33 GW of diverse owned and contracted generating capacity as of June 30, 2026. This provides stability for the company’s revenue stream and insulates it from lower sales in any particular service area. The company has lately witnessed increases in commercial load, driven by new data processing facilities.

AEP is seeing strong commercial load growth, driven by energy-intensive sectors such as AI data centers. In the second quarter of 2026, commercial sales increased 14.9% at vertically integrated utilities and 17.4% at transmission and distribution utilities, supporting higher electricity volumes and revenues. The company expects this trend to continue, with incremental contracted load projected to reach 69 GW by 2030, up from 63 GW in the first quarter of 2026. Data centers account for 90% of this load, while Texas represents about 45 GW.

How Do Zacks Estimates Compare for GEV & AEP?

The Zacks Consensus Estimate for GE Vernova’s 2026 earnings per share (EPS) indicates a year-over-year increase of 74.11%. GEV’s long-term (three to five years) earnings growth rate is 18%.