GE Vernova Vs. GE Healthcare: Betting On Power Or Medical Tech To Lead AI-Powered Future?

Two of GE’s high-profile spin-offs, GE Vernova Inc GEV and GE Healthcare Technologies Inc GEHC, are preparing to report their third-quarter earnings, but one seems better positioned for the AI-powered future.

With GE Vernova gaining significant traction in the electric power sector and GE Healthcare making strides in AI-assisted medical tech, let's break down which stock is charged up for third quarter gains.

GE Vernova: Energizing Growth

GE Vernova, GE's electric power division, is poised to electrify investors as it reports earnings tomorrow.

Wall Street is optimistic, with expectations of 38 cents EPS and $8.8 billion in revenue.

Analysts are buzzing about Vernova's bullish outlook, driven by increasing investments in power infrastructure, electrification of industries, and the demand for AI data centers. Despite some turbulence in the wind energy sector, Vernova has been riding a year-to-date surge of 110.61%.

Deutsche Bank backs Vernova, setting a lofty $354 price target, banking on the company's dominant position in power generation and its ability to modernize grids for the AI era. With analysts touting it as the "supermarket" for electric power, Vernova's global reach and growing demand for heavy-duty gas turbines make it a favorite pick ahead of earnings.

Read Also: This GE Vernova Analyst Begins Coverage On A Bullish Note

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Technically, GE Vernova is lighting up the charts. Trading at $276.43, the stock is well above its eight, 20 and 50-day moving averages, signaling continued bullish momentum.

Analysts expect CEO Scott Strazik to double down on the growing AI-powered data center market and industrial electrification during the earnings call, cementing Vernova's role as an AI-driven power play.

GE Healthcare: Lagging But Learning AI

On the flip side, GE Healthcare has lagged behind Vernova in 2024, up only 17.59% year-to-date.

However, the company isn't sitting still. With a third quarter earnings date set for Oct. 30, expectations are tempered at $1.06 EPS and $4.9 billion in revenue.

While GEHC may have been knocked back by slow Chinese orders and high financing costs, analysts see potential for recovery, especially with its recent AI breakthroughs.

GE Healthcare's push into AI tools like CareIntellect and Versana Premier could offer long-term gains, streamlining healthcare data and enhancing diagnostic accuracy. Despite its softer recent performance, GE Healthcare continues to innovate, recently launching AI tools designed to improve cancer treatment and fetal health monitoring.

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But with the stock trading at $89.80 and technical indicators showing selling pressure, investors might need to wait before this stock regains its AI groove.

The Verdict

While GE Healthcare is leaning heavily into AI for medical advancements, GE Vernova's position in the booming electric power market, fueled by AI-driven data centers, puts it in a stronger spot heading into the third quarter.

With momentum on its side and bullish technical signals flashing, GE Vernova is the GE spinoff to watch.

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