2 Hidden AI Power Stocks: GE Vernova & Oklo Analysis

The AI revolution is accelerating at a breathtaking pace, even as market strategists and economists ring alarm bells over extended valuations and potential bubble risks. Wall Street remains deeply divided, with prominent figures like Jim Cramer shooting down AI bubble fears while others anticipate a repeat of the dot-com bust. Jeff Bezos has even coined the term ‘good bubble’ to describe the current market environment. Regardless of where one stands in this debate, the undeniable reality is that AI’s power demands are reaching unfathomable levels, creating massive infrastructure opportunities that extend far beyond traditional technology companies.

With the launch of increasingly powerful AI models like OpenAI’s Sora 2, featured on the viral Sora app, electricity requirements are expected to shift into overdrive. The exact power consumption of next-generation AI offerings remains unknown, but what is clear is that existing energy infrastructure will need significant upgrades to meet these demands. This creates a compelling investment thesis for companies positioned to power the AI revolution from behind the scenes—particularly those in the energy sector that can provide reliable, scalable power solutions for the data centers that form AI’s backbone.

GE Vernova (NYSE:GEV) has emerged as a standout performer in the AI infrastructure space, delivering an incredible 350% return over the past two years. The company’s advanced gas turbines have become essential equipment for power producers scrambling to meet the electricity surge driven by AI data centers. These turbines represent the cutting edge of power generation technology, specifically designed to handle the massive, consistent energy loads required by AI operations.

Beyond its physical infrastructure, GE Vernova’s PlanOS power grid planning platform positions the company as a critical enabler of the AI energy transition. This technology helps power producers modernize and optimize their grids for the AI age, creating an additional revenue stream while solidifying GE Vernova’s role as an infrastructure partner. Despite recent pullbacks that have brought shares down approximately 11% from all-time highs, the company maintains a substantial order backlog that suggests sustained demand for its AI-powering solutions.

While some analysts express concerns about valuation and limited near-term upside, GE Vernova’s comprehensive approach to powering the AI revolution—combining physical infrastructure with digital grid optimization—makes it a compelling long-term play. The company represents what many investors overlook when betting on AI: the essential energy infrastructure that makes the technology possible in the first place.

Oklo (NASDAQ:OKLO) represents the more speculative but potentially transformative side of AI power infrastructure. Backed by Sam Altman and praised as a key AI power stock over a year ago, the nuclear power innovator has delivered astronomical returns—soaring over 600% in one year and an astonishing 1,400% over two years. The company’s focus on reinventing nuclear reactor technology positions it at the forefront of clean, reliable energy solutions for AI’s massive power requirements.

Canaccord Genuity has identified Oklo as one of the ’emerging’ names in the ‘new wave of energy leaders,’ reflecting the company’s potential to disrupt traditional power generation. However, the stock’s meteoric rise has made valuation increasingly challenging, with both bullish and bearish analysts initiating coverage in recent months. The speculative nature of Oklo’s business model, combined with its dramatic price appreciation, warrants cautious consideration from investors.

For those able to envision the company’s potential over a 10-20 year horizon, Oklo represents one of the most exciting ways to play the power side of the AI revolution. However, given the current valuation levels and the high stakes involved, many investors might prefer waiting for a meaningful pullback rather than chasing further gains in what has already been a multi-bagger run. The company’s success ultimately depends on its ability to commercialize nuclear technology at scale to meet AI’s escalating power needs.

Investing in AI power infrastructure requires balancing tremendous growth potential against significant valuation concerns. Both GE Vernova and Oklo face skepticism from analysts who question whether current prices adequately reflect business fundamentals. However, the underlying thesis remains compelling: AI cannot advance without reliable, scalable power solutions, and these companies are positioned to provide them.

The key differentiator between these two investments lies in their technological approaches and risk profiles. GE Vernova offers established technology with proven applications in the current energy landscape, making it a relatively safer play within the AI infrastructure space. Oklo, meanwhile, represents frontier technology with higher potential rewards but correspondingly greater risks. Investors should consider their risk tolerance and investment horizon when evaluating these opportunities.

As the AI revolution continues moving full speed ahead, betting against the infrastructure companies powering it could prove disastrous. However, prudent investment strategy suggests careful position sizing and potential entry during market pullbacks. Both companies represent critical components of the AI ecosystem that many investors overlook in their pursuit of direct AI technology plays, offering alternative exposure to one of the most transformative technological shifts of our time.