It’s the most important year in the history of our nation.
The moment everything changed, forever. It’s the year that three distinct forces took root. Forces that would go on to transform the world, reshape human civilization, and create unimaginable wealth for certain men.
Now, on the eve of America’s 250th anniversary a new 1776 Moment is nearing completion… and it once again promises to make some people wildly wealthy while leaving others behind and potentially decimating the fortunes of others.
But to understand the potential of what’s coming next…
We first need to look back to 1776 and understand how the convergence of three immense forces created the most explosive period of progress in our nation’s history.
First was the birth of America.
On August 2, at the Pennsylvania State House in Philadelphia the Founding Fathers signed The Declaration of Independence.
Their vision was to create a new type of nation. One that was based on individual freedoms, man’s right to wealth, and that was for the people by the people. A country free from the tyrannical aristocracy.
The second moment was the birth of capitalism.
Written by a Scotsman, Adam Smith, The Wealth of Nations outlined the case for free markets and laissez-faire governments.
It was the first book to explain that the wealth of individuals and nations was best achieved not by top-down control but rather through free markets, division of labor, and the “invisible hand” of self-interest.
You’ve got to remember: before this, the world operated on a feudal system. Nations believed wealth was finite, needed to be controlled, and that trade was a zero-sum game. Basically, me getting richer, meant you were poorer.
The Wealth of Nations turned all of that on its head, though, and Smith’s treatise was the birth of capitalism. An economic system that is responsible for more wealth and innovation over the past 250 years than all of human history, combined.
But this exponential period of progress could not have happened if not for another historic event in 1776.
The birth of the Industrial Revolution.
You see, while Jefferson was penning the Declaration of Independence and, quite literally, the day before Adam Smith published The Wealth of Nations…
Another Scotsman, James Watt, was selling the first-ever steam engine to the Carron Corporation Ironworks. Up until this moment the only viable source of industrial power was muscle.
Animals pulling carts… men swinging scythes… slaves ploughing grain…
But the steam engine meant, for the first time ever, we were able to generate colossal amounts of industrial power with inanimate fuel sources.
This allowed machines to do the work of dozens, even hundreds, of people as long as enough coal or wood was fed into the furnace.
It’s one of the most transformative inventions ever, the breakthrough that kicked the Industrial Revolution into overdrive.
So in one year, 1776, we saw the birth of America, the birth of capitalism, and the birth of the Industrial Revolution...
250 years later, the same three forces are converging again:
A new economic treatise was just adopted… a new technological breakthrough is going mainstream… and Trump just signed a new so-called “Declaration of Independence.”
And the wealth that will be created – and destroyed – by this New 1776 Moment could dwarf anything we’ve ever seen before.
As Andrew McAfee from MIT put it after analyzing 100 years of data:
“We have never seen wealth created at this size and speed."
Yet, I’m willing to bet you’ve never heard anything about this story. But that ends now. In this presentation, I’m going to show you how the convergence of three forces is about to reshape the world, permanently.
And, most importantly, I’m going to show you how a handful of small, under-the-radar companies could be the biggest beneficiaries of this New 1776 Moment.
And create unprecedented wealth for early investors.
Good investing,
Porter Stansberry
GE Vernova Rallies on the AI Grid Supercycle: Turbines, Transformers, and Cash Returns
Authored by Jeffrey Neal Johnson. Date Posted: 2/11/2026.
Summary
- The Power segment is experiencing a surge in orders as data centers require reliable baseload electricity to operate continuously.
- The recent acquisition of Prolec GE strengthens the Electrification segment by securing a critical supply chain for high-demand transformers.
- Management has raised the dividend and authorized share buybacks following a record year of free cash flow generation and backlog growth.
While the stock market has spent the last two years obsessed with microchips and artificial intelligence (AI) software, a quiet revolution has taken place in the physical world. The massive data centers required to run AI models have an insatiable appetite for electricity, and the aging global power grid is struggling to keep up. This disconnect between digital ambition and physical reality has helped fuel a rally for GE Vernova (NYSE: GEV).
Following its spin-off from parent conglomerate General Electric in April 2024, GE Vernova has quickly established itself as a standalone industrial giant. As of mid-February 2026, the stock is trading near $800, marking an all-time high. Over the last 12 months, shares have surged approximately 107%, significantly outperforming legacy industrial peers.
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Investors are waking up to a simple reality: the AI revolution stops cold without the electricity to run it. By supplying the machinery to generate power and the equipment to transport it, GE Vernova has positioned itself as the infrastructure backbone for the global energy transition. The company is no longer just an industrial spinoff; it is the primary infrastructure play for the next decade of digital growth.
The Cash Engine: Fueling the Data Center Boom
The main driver of GE Vernova's valuation is its Power segment, specifically the gas turbine business. While the world transitions toward renewable energy, sources like wind and solar are intermittent — the sun does not always shine and the wind does not always blow. Data centers operated by major technology firms, however, require reliable power 24/7. To bridge that gap, utilities and independent power producers are turning to natural gas turbines.
That urgent demand created a massive seller's market in late 2025. GE Vernova's recent financial results illustrate how aggressive this buying spree has become:
- Order surge: In the fourth quarter of 2025, orders in the Power segment rose 77% organically.
- Backlog growth: The backlog for gas turbines and slot reservations jumped from 62 gigawatts (GW) to 83 GW in a single quarter. Management is targeting 100 GW by the end of 2026.
- Capacity expansion: To meet demand, the company is ramping up manufacturing to produce roughly 20 GW of turbines annually by mid-2026.
Utilities are not just buying for today; they are reserving manufacturing slots years in advance. On Feb. 3, 2026, the company signed a Strategic Alliance Agreement with Xcel Energy (NASDAQ: XEL), a deal that secures hardware capacity through the 2030s and effectively locks in revenue for the next decade. A reservation agreement with Maxim Power (TSE: MXG) shows producers are willing to pay to reserve capacity. The company is also selling HE (High Efficiency) upgrades, such as the recent program at the Coryton Power Plant in the U.K., which allow existing plants to generate more power with less fuel.
Plugging In: The $5.3 Billion Bet on Transformers
Generating electricity is only half the battle — it must be delivered where it's needed. The Electrification segment, which focuses on grid solutions, has become the company's fastest-growing unit. Revenue in this segment rose 36% in the fourth quarter, driven by the urgent need to modernize aging electrical grids to handle heavy loads from AI data centers and electric vehicles.
A major catalyst arrived on Feb. 2, 2026, when GE Vernova closed its acquisition of the remaining 50% stake in Prolec GE. The $5.3 billion transaction matters for several reasons:
- Supply-chain control: It gives GE Vernova full control over a large manufacturing footprint for electrical transformers.
- Critical shortages: Transformers are currently the biggest bottleneck in the electrical supply chain, with lead times stretching into years.
- Data-center focus: Prolec GE offers a dedicated product line for data center power, aligning closely with the AI infrastructure narrative.
The company is also expanding margins by layering software over hardware. The launch of GridBeats, a software-defined automation suite, allows utilities to manage substations more efficiently. This shift toward digital solutions helped margins in the Electrification segment expand to 17.1% in the most recent quarter.
Profit Over Volume: Converting Headwinds into Dividends
While the Power and Electrification segments are booming, the Wind segment remains a recovery story. The segment reported an EBITDA loss in 2025 of roughly $600 million, driven largely by challenges in offshore wind, including regulatory delays at the Vineyard Wind project caused by a government stop-work order.
Investors have largely looked past these losses because management is exercising strict financial discipline. Rather than pursuing unprofitable growth to boost revenue, GE Vernova is shrinking its onshore wind backlog and focusing on profitable opportunities. That profit-over-volume strategy is showing signs of success:
- Repowering wins: In 2025, the company secured 1.1 GW of repowering orders in the U.S. onshore market.
- The logic: Repowering upgrades existing turbines with newer, more efficient nacelles and drivetrains while keeping original towers. It is generally faster and more profitable than building new farms from scratch.
Because the gas and grid businesses are generating significant cash, the wind struggles have not weakened the company's financial position. GE Vernova produced $3.7 billion in free cash flow in 2025, more than double the prior year. That cash allowed the Board of Directors to take two shareholder-friendly actions:
- Dividend hike: Doubled the quarterly dividend to $0.50 per share, annualized to $2.00.
- Buybacks: Increased the share repurchase authorization to $10 billion.
Those moves signal management's confidence that the cash flow hose will remain open, despite near-term volatility in the wind business.
Pricing the Supercycle: Is the Premium Worth It?
GE Vernova is trading at a premium valuation of roughly 45 times trailing earnings. While that is high for a traditional industrial stock, the market appears to be pricing in the unprecedented visibility provided by a record $150 billion backlog. That backlog effectively locks in revenue growth for years, insulating the company from short-term economic swings.
The AI trade has evolved. Phase one focused on semiconductors and chips (like NVIDIA (NASDAQ: NVDA)); phase two is about the infrastructure required to run them. With the integration of Prolec GE and its dominant position in gas power, GE Vernova has solidified its leadership in phase two. Risks remain around offshore wind execution, but accelerating demand for electricity suggests the company's momentum is grounded in fundamental necessity rather than speculative hype.
Cleveland-Cliffs Sinks After Earnings—Is the Selloff Overdone?
Submitted by Chris Markoch. Article Posted: 2/10/2026.
Key Takeaways
- Cleveland-Cliffs stock was down nearly 19% in intraday trading following its mixed earnings report and soft revenue guidance.
- Management believes 2026 will be a stronger year, driven by tariffs, higher shipments, and asset utilization.
- Investors remain cautious due to limited clarity around the proposed POSCO partnership.
Cleveland-Cliffs (NYSE: CLF) reported mixed earnings the morning after the Super Bowl. The initial market reaction was bearish, but after the sell-off the stock may deserve a second look.
Shares of the U.S.-based steelmaker fell about 18.9% in midday trading the day after the report. The results were solid in spots, but weaker elsewhere: a narrower-than-expected loss was offset by revenue that missed forecasts.
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A 6% revenue miss wasn't ideal but wasn't unexpected; the company gave investors several tangible reasons to expect 2026 will be a better year. Still, with CLF stock up more than 47% in the 12 months heading into earnings, many investors wanted stronger guidance.
Setting Up the Opportunity in CLF Stock
The stock now sits at a level that served as support in October and as resistance about a year ago. This level aligns with the stock's 150-day simple moving average (SMA), making it a key support area.
The stock isn't oversold yet, but selling has pushed it below the lower Bollinger band, suggesting oversold conditions may be developing.
A Lot of “Ifs” to Consider
If Cleveland-Cliffs doesn't meet management's expectations in 2026, it won't be because management under-promised. Chairman, president and CEO Lourenco Goncalves painted a bullish picture for investors on the earnings call.
The bull case for CLF stock in 2026 is straightforward. As with other basic materials companies, 2026 will be the first full year of 50% steel tariffs, which should boost demand for domestic steel. That pairs with the company now having all its assets fully operational, which was not the case in 2025.
The company also cited gains in market share in its key automotive sector. More broadly, Cleveland-Cliffs pointed to improved manufacturing conditions, including lower coal prices, as reasons for optimism this year.
Supporting the bullish outlook, Cleveland-Cliffs expects to ship about 16.8 million tons of steel in 2026, roughly a 3% gain from the 16.2 million tons shipped in 2025. The company also announced capital expenditures of approximately $700 million, in line with recent years.
Where Analysts Needed to Hear More
In contrast to his broad optimism for the year, Goncalves was more ambiguous when asked about an update on the company's strategic partnership with Korean steelmaker POSCO.
Under the terms of the proposed agreement, POSCO could take an equity investment in Cleveland-Cliffs.
There was no bad news per se, but nothing concrete emerged on the call. That leaves some investors wondering whether the agreement—expected to close in the first half of 2026—is still on track.
On the other hand, the company didn't tie its initial 2026 outlook to the POSCO deal. It may come down to whether investors believe the company's outlook—excluding any POSCO equity investment—is sufficient to support CLF's stock price going forward.
The Cash Flow Sensitivity Investors May Be Ignoring
One overlooked takeaway from Cleveland-Cliffs' earnings presentation is how well positioned the company is. Even modest improvements in steel pricing and capacity utilization could meaningfully boost the firm's earnings. Management emphasized that 2025 results were weighed down by contract-pricing lag and underutilized assets. Those factors distort near-term revenue but don't reflect normalized cash-flow potential.
With all facilities now fully operational and automotive contracts resetting through 2026, incremental volume gains could translate disproportionately into free cash flow as fixed costs are absorbed. That dynamic helps explain why management maintained steady CapEx guidance while expressing confidence in improving margins.
In other words, this quarter's weakness says more about timing than structural demand. For investors focused solely on the revenue miss, the market may be discounting how quickly CLF's earnings power could recover if pricing and shipments move even slightly in the company's favor.
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