BUZZ-Venture Global shares fall after signing power agreements with GE Vernova and Baker Hughes
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October 15 - ** LNG producer Venture Global (VG.N) erased all pre-market gains on Thursday, last trading at $12.17, down 8.3%, hitting a more than two-month low. Previously, the company announced it would sign power supply agreements with multiple data centers amid surging AI demand.
** The company (link) signed agreements with GE Vernova GEV.N and Baker Hughes BKR.O to purchase up to 16 new 720-megawatt generator units and supporting equipment, including turbines and transformers.
** According to the statement, these agreements will enable VG to gradually provide up to 10 gigawatts of new computing capacity for potential nearby infrastructure and data centers at sites it owns or controls.
** On the day, GEV shares fell 5%, BKR shares dropped about 3%.
** Meanwhile, AI infrastructure companies, including chipmakers (link), extended recent declines on Thursday, as the prospect of rising interest rates (link) intensified concerns about the sector’s ability to finance large-scale expansion.
** Venture Global is expected to place its first power equipment order by the end of the year.
** Technology and utility companies are (link) exploring various ways to increase the power flexibility of energy-intensive data centers, aiming to help ease pressure on the U.S. grid amid skyrocketing AI-driven demand.
** Despite the retreat, VG shares are still up about 79% so far this year.
** Of the 18 analysts covering VG, 11 give a “strong buy” or “buy” rating, and 7 rate it “hold”; the median price target is $16.
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