Nvidia CEO Jensen Huang believes that America refocusing on energy growth will not only help the U.S. win on artificial intelligence but also fuel continued economic growth. Jim Cramer says he has the power stock to own, which has found itself at the heart of providing solutions to companies looking to generate more energy to meet booming demand for AI computing. During the Investing Club’s October Monthly Meeting , Jensen told Jim that “without energy growth, there is no industrial growth, without industrial growth, there’s no stock price growth, there’s no economic growth, there’s no national security.” It’s increasingly clear that energy scarcity is holding back the world’s biggest tech companies from doing more with AI. Jensen has said it. The leaders of OpenAI, which got a long-term $100 billion investment from Nvidia to help build data center capacity, have said it. “The realization that we have to go back and become a country that has energy growth is really foundational, it’s really great,” the Nvidia CEO said at Tuesday’s Club meeting from the New York Stock Exchange. He credited President Donald Trump ‘s leadership on energy and encouraged AI data centers to be “power generators themselves.” There are many ways for data centers to make the extra energy they need when the country’s power grid is overtaxed. “Over the next several years, nuclear is going to come online, and I hope that we’ll get that going as fast as possible,” Jensen said, pointing out that power generators are already becoming part of the data center playbook. To capitalize on AI’s insatiable need for energy, Jim told members during Wednesday’s Morning Meeting , “We bought the right [stock]. We bought GE Vernova because they are the real builder of these … small modular [nuclear] reactors.” While additional nuclear capacity is a few years off, GE Vernova has a booming business in the here and now selling natural gas-powered turbines – basically, these are huge engines that create gobs of energy. The company’s CEO, Scott Strazik, said it himself at last month’s Morgan Stanley’s Laguna Conference. “Not only is the world going to need more energy, but the proportion of that energy that’s going to be coming from electrical power is going to grow.” Jim has been urging GE Vernova management to more substantially increase turbine production to meet that demand. Last month, Jim said, “When I spoke to Scott Strazik, begging him, literally begging him, to increase capacity, he said the last three times that people have done that it’s been a disaster.” On Wednesday, Jim said during the meeting, “If we’re going to have enough power, it’s going to be GE Vernova. They are the largest maker of turbines.” Jim suggested that Trump call up GE Vernova to tell them to increase turbine production. On Tuesday morning, we bought more shares of GE Vernova. We had been waiting for this stock to come off the boil. While up Wednesday, the stock is still down more than 7% from its all-time closing of $664.55 on Aug. 6. Shares have been trading mostly sideways since surging 14% to $629 on July 23, following a much better-than-expected quarter and a raised full-year outlook . As Jeff Marks, director of portfolio analysis for the Club, wrote in our trade alert : “In keeping with our view of patiently waiting for a pullback to buy what Cramer has previously called ‘maybe the best story in the entire market,’ we are nibbling on shares and upgrading our rating to 1,” which is the Club’s buy equivalent rating. The stock has soared nearly 90% year to date. Our conviction in the long-term demand for AI infrastructure has increased over the past few weeks following OpenAI’s deals with Nvidia and rival chipmaker Advanced Micro Devices . More AI infrastructure means more demand for energy. Marks also wrote Tuesday, “One thing we’re wondering is whether OpenAI will also make deals with power suppliers like GE Vernova, whose gas turbines are used to generate electricity, and its electrification products provide grid solutions and power conversion.” Already, some GE Vernova turbines will be used at an on-site natural gas plant being built in Texas on the massive Stargate data center campus co-developed by OpenAI. Stargate was announced to much fanfare at the White House in January, shortly after Trump took office. GEV YTD mountain GE Vernova YTD Another tailwind for GE Vernova is that these turbines are big-ticket items that have been a way for countries to reduce their trade deficits with the United States. For example, when the president visited the Mideast in May, GE Vernova was the recipient of $14 billion worth of gas turbines and energy solutions orders from Saudi Arabia as part of the kingdom’s commitment to invest $600 billion in the U.S. (Jim Cramer’s Charitable Trust is long GEV. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. 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Nvidia CEO says AI needs way more energy. Cramer says this is the power stock to own
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