• In February 2026, Baker Hughes announced it would supply 25 BRUSH Power Generation electric generators, Automatic Voltage Regulators and cubicles to Boom Supersonic, expanding a prior 2025 agreement to support 1.3 GW of onsite power capacity for AI-focused data centers through deliveries scheduled from mid-2026 to 2028.
• This contract underscores Baker Hughes’ push into higher-value Industrial & Energy Technology solutions, tying its generator portfolio directly to the fast-growing AI data center power market.
• We’ll now examine how this large AI data center generator order may influence Baker Hughes’ investment narrative built around IET expansion.

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Baker Hughes Investment Narrative Recap

To own Baker Hughes, you need to believe its shift toward Industrial & Energy Technology can offset its exposure to a still-volatile upstream oil and gas market. The Boom Supersonic AI data center power contract supports the IET growth catalyst, but does not remove key risks around policy shifts, supply chain pressures and the company’s reliance on gas and LNG infrastructure.

The Vallourec MOU on hydrogen storage ties directly into Baker Hughes’ push into new energy infrastructure alongside data center power, reinforcing the same IET expansion story highlighted by the Boom generator award. Together, these moves add to the company’s backlog in areas that are less directly tied to traditional oilfield spending cycles, even as execution and regulatory risks remain central to the thesis.

Yet investors should be aware that growing exposure to LNG and gas based data center power also concentrates Baker Hughes’ risk if...

Baker Hughes' narrative projects $29.1 billion revenue and $2.9 billion earnings by 2028.

Uncover how Baker Hughes' forecasts yield a $60.80 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span roughly US$51 to about US$79 per share, showing how far apart individual views can be. As you weigh those opinions, keep in mind that Baker Hughes’ push into data center and new energy projects adds opportunity but also depends heavily on sectors that may be sensitive to future policy and regulatory shifts, so it is worth reviewing several perspectives before deciding how this fits your own expectations.

Explore 4 other fair value estimates on Baker Hughes - why the stock might be worth 21% less than the current price!

The Verdict Is Yours

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Baker Hughes research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Baker Hughes research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Baker Hughes' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.