TLDR
- GEV fell 8.6% on Monday to $874.66, far underperforming the S&P 500’s 0.5% drop
- Anthropic CEO Dario Amodei and other AI leaders called for a global slowdown in AI development
- GLJ Research’s Gordon Johnson initiated coverage with a Sell rating and a Street-low $470 price target
- Johnson’s 2027 Ebitda estimate of $7.4B sits well below the FactSet consensus of $9.5B
- Sector peers Eaton and Vertiv also fell around 7.6% on the day
GE Vernova stock dropped 8.6% on Monday, September 14, closing at $874.66. That compares to a 0.5% decline in the S&P 500 and a 0.6% drop in the Nasdaq Composite.
Two things hit GEV at once: a wave of AI-related fear across the market and a fresh Sell rating from an analyst who thinks the stock could lose half its value.
The AI concern started with an essay from Anthropic CEO Dario Amodei, who argued that AI capabilities are advancing faster than researchers can control them. He called for a slowdown in frontier AI development and proposed embedding independent safety monitors inside AI labs.
OpenAI CEO Sam Altman, Elon Musk, and Google DeepMind’s Demis Hassabis all backed the ideas in some form.
That matters for GEV because its power equipment business is directly tied to AI data center demand. If AI development slows, so does the need for the electricity infrastructure GE Vernova supplies.
Coming into Monday, GEV was up 46% in 2026 and had gained 324% over the previous 24 months.
New Sell Rating Adds Pressure
On top of the macro concerns, GLJ Research analyst Gordon Johnson launched coverage of GE Vernova with a Sell rating and a $470 price target. That’s roughly 50% below where the stock was trading and more than $300 below the next-lowest target on Wall Street.
Johnson’s core argument is valuation. GEV trades at around 26 times his estimated 2027 Ebitda. The S&P 500 trades closer to 13 times. He values the company at 14 times his own Ebitda estimate.
He also believes earnings will come in lower than expected, partly because power turbines being delivered in 2027 were ordered when prices were lower. His 2027 Ebitda estimate is $7.4 billion, versus the FactSet consensus of $9.5 billion.
Johnson’s view is a clear outlier. Nearly 80% of analysts covering GEV rate it a Buy, compared to the typical S&P 500 Buy-rating ratio of 55% to 60%. The average price target sits around $1,240.
Sector Selling Spread
GEV wasn’t alone. Eaton and Vertiv, both suppliers of electrical equipment tied to AI infrastructure, each fell around 7.6% on the day.
The selling came just days after Jefferies analyst Julien Dumoulin-Smith raised his GEV price target to $1,185 from $1,155 on Friday. He cited growing service revenue from an expanding installed base of power turbines, which sent the stock up 3.6% that day.
The average analyst price target for GE Vernova remains around $1,240, well above both Monday’s close and Johnson’s $470 target.
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