GE Vernova, the power-production-focused spinoff of General Electric, reported third-quarter revenue of just under $10 billion, up 12% year over year. This performance pushed the organization out of the red and back into black. Most of that revenue came from natural gas power turbines, while its power grid solutions more than doubled their revenue year over year. Its wind turbine business continues to advance at a slower but sustainable pace.
Through the first three quarters of last year, GE Vernova's grid and electrification equipment backlog grew by $6.5 billion to $26 billion. Its gas turbine backlog expanded from 55 gigawatts to 62 gigawatts despite increased deliveries during this period.
Alphabet, Google's parent company, saw its cloud computing business grow 33% year over year in the third quarter, leading to an 84% improvement in operating profits. Google's cloud business continues to grow faster than those of larger rivals Microsoft and Amazon. Search remains its biggest revenue generator, but cloud computing, subscription-based services, and YouTube have become meaningful profit centers.
In October, AI service provider Anthropic opted for Google's Tensor Processing Units in a deal that could be worth tens of billions of dollars. Meta is reportedly considering Google's TPUs for its own data centers as well.
Nebius Group offers cloud-based access to specialized AI data center services, excelling at artificial intelligence model training and inference. In September, Microsoft committed to purchasing several billion dollars' worth of AI infrastructure services from Nebius. The company's 2025 top line is expected to be up 373% year over year once fourth-quarter figures are reported, with growth projected to accelerate to over 500% in fiscal 2026.
Nebius is not yet profitable, and it is unclear when it might be. Analysts following Nebius consider it a strong buy, with a consensus target of $158.50, almost 50% above the stock's current price.
The Motley Fool Stock Advisor analyst team identified 10 best stocks for investors to buy now, and GE Vernova was not among them. The 10 selected stocks could produce significant returns in coming years.