GE Vernova shares slide after SoftBank revises US data center project plans
GEV•GE Vernova shares fell more than 6% after SoftBank revised power-generation equipment procurement plans for its US data center projects, including an Ohio project. Analysts said the contract is being revised, while GE Vernova said SoftBank’s announcements had no positive or negative impact on the company.
1. Procurement plans revised
Shares of power equipment maker GE Vernova fell more than 6% after SoftBank revised equipment procurement plans for its US data center projects. Analysts said the Ohio project involves a 10-gigawatt AI server warehouse backed by 9.2 gigawatts of new natural gas generation, and remains on track, though its contract is being revised.
2. Company and analyst views
SoftBank booked a $3.7 billion charge in the second quarter after revising certain power-generation equipment procurement strategies, J.P. Morgan analysts said. The analysts called the news negative, while GE Vernova said it could not comment on individual customer relationships and that SoftBank’s recent announcements had no positive or negative impact on the company. J.P. Morgan said delayed turbine deliveries could leave GE Vernova able to use those delivery slots for other customers.
3. Demand concerns
Investors are concerned that slower AI infrastructure spending could affect future turbine demand, CrispIdea analyst Abhishek Rai said. SoftBank denied a claim that it was defaulting on turbine orders and said there was no discussion to reduce the size of the Ohio project.
