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"Could Be First Shoe To Drop": AI Power Stocks Tumble As SoftBank's Write-Down Deepens Bubble Fears GE Vernova and Bloom Energy shares plunged Tuesday after SoftBank Group disclosed a $3.7 billion charge tied to power equipment procurement. We asked whether this write-down, cancellation, or "revised procurement strategy" in the AI spending boom could signal trouble ahead in a note titled " Masa's $3.7 Billion Bonfire: SoftBank Posts $7 Billion Loss After Torching Deposits On AI Power Gear As Interest Costs Double ." SoftBank's disclosure followed Elon Musk's claim last week on X that Masayoshi Son's investment group was " defaulting on their turbine orders ," an allegation SoftBank denied. For GE Vernova, however, the cancellation scare runs into a massive backlog. The company had 122 gigawatts of orders at the end of the third quarter, is targeting at least 130 gigawatts by year-end and is booking projects through 2031. GE Vernova and Bloom Energy are under pressure as traders price in the risk that SoftBank's procurement woes could signal a bigger retreat and/or spread ... UBS industrials and materials sector specialist Allyson Gordon addressed SoftBank woes and the selling pressure on GE Vernova and related stocks in a note: GE Vernova is under pressure after SoftBank took a $3.7bn write-down on data center equipment , with the market extrapolating that news to potential turbine cancellations . The counterargument is that GE Vernova is already booking projects through 2031 and had 122GW of backlog as of 3Q, versus a year-end target of at least 130GW, suggesting it could absorb some cancellations. Given current demand, there are also likely plenty of customers willing to take available turbines, potentially at higher prices. Some client feedback is also questioning how much should be extrapolated from SoftBank specifically. That said, the market is clearly not in a forgiving mood, with concerns that this could be the first shoe to drop and lead to broader…

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