Okay, let's talk about a company that has things that haven't yet reached where they should be. That is GE Vernova . This company is responsible for the turbines that power gas and wind power plants.
This is the spin-off company from GE for their energy business.
So , when we say there is a backlog in demand and we can't build enough capacity, a large part of that backlog comes from companies like GE Vernova. What's interesting about GE is that they've been working in this field for a very long time .
Almost all of these companies have stated: "Yes , we have huge demand today, but we will not rush to double our production capacity and then suffer the consequences if this demand is fleeting, or if it lasts for only three, four or five years, because we view this business as an investment that extends for decades."
So, the way this will manifest in their operations is that we will see revenue growth. It would be a bit like Micron, where they would say, "Hey, you know what?" We will simply increase our prices.
We will get slightly better profit margins . We will make you pay upfront for the turbines you need. And that's exactly what's happening in the market right now.