FTAI Aviation stock soars 13% as company tackles AI-driven power shortages with new turbine business

FTAI Aviation (FTAI) Stock Jumps As Company Launches AI-Driven Power Business - FTAI Aviation (NASDAQ:FTAI)

FTAI Aviation Ltd (NASDAQ:FTAI) shares are trading higher Tuesday afternoon after the company unveiled FTAI Power, a new business that converts CFM56 aircraft engines into power turbines aimed at supplying electricity to data centers and other users facing AI-driven power shortages. Here's what investors need to know. FTAI Aviation stock is approaching key resistance levels. What's behind FTAI new highs? What To Know: The New York-based lessor and maintenance specialist said FTAI Power will adapt the world's largest aircraft engine platform into a 25-megawatt aeroderivative gas turbine designed to be a flexible, lower-cost alternative to larger grid units. Production is expected to begin in 2026. The company believes its scale as one of the largest aftermarket owners and servicers of CFM56 engines, with more than one million square feet of maintenance facilities and a fleet exceeding 1,000 engines, will allow it to produce the turbines predictably and cost-effectively and support over 100 units a year. Management said accelerating electricity demand from AI hyperscalers has created an urgent need for rapid, modular power solutions. Separately, BTIG analyst Andre Madrid on Tuesday reiterated a Buy rating on FTAI Aviation and maintained his $230 price target. Benzinga Edge Rankings: According to Benzinga Edge rankings, FTAI Aviation shows a strong Momentum score of 88.58, signaling robust recent price performance compared with other stocks. FTAI Price Action: FTAI Aviation shares were up 13.01% at $195.32 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data. The current price is notably positioned well above key historical levels, suggesting robust upward momentum. The stock has surged past its previous resistance levels, with the recent high of $199.88 indicating a potential new resistance point. Traders may look to this level as a benchmark for future price action, while the low of $176.68 could serve as a near-term support level, providing a cushion against potential pullbacks. EXCLUSIVE: SpaceX IPO Could 'Open The Floodgates' - How Private Companies, Tesla Will Be Impacted Image: Shutterstock FTAIFTAI Aviation Ltd$195.7613.3%Overview This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Why FTAI Aviation Stock Is Soaring Today | The Motley Fool

After dipping slightly during yesterday's trading session, shares of FTAI Aviation (FTAI +13.44%) are straightening up and flying right today. As 2025 draws to a close, the company has announced plans for a new turbine that can meet the power demands of the rapidly growing artificial intelligence (AI) industry. As of 1:36 p.m. ET, shares of FTAI are up 13.1%. Committed to developing a new application for aircraft engines, FTAI management announced a new platform today: FTAI Power. By converting CFM56 engines to power turbines, FTAI Power intends to provide "the most flexible, cost efficient and scaled solution for delivering reliable energy to data centers globally." The company plans to remanufacture the CFM56 core turbine and integrate it with aeroderivative components to provide a fully integrated power solution. With its fleet of 1,000 CFM56 engines and those in its pipeline, FTAI projects annual production capacity of more than 100 units in addition to providing service solutions. Speaking to the growth opportunity that the FTAI Power provides, David Moreno, FTAI's chief operating officer, stated: "The accelerating demand from AI hyperscalers has created an urgent need for immediate power solutions. We believe FTAI Power will be a critical partner for the AI economy, which requires unparalleled amounts of electricity faster and in a more flexible format." Management anticipates production of the new power turbine to begin in 2026. The company's interest in expanding its vision to meet the power needs of data centers is undoubtedly intriguing. Potential investors, however, will want to perform their due diligence and thoroughly examine the company's fundamentals, as its inconsistent ability to generate positive operating cash flow may signal a red flag to some.

FTAI Aviation stock rating reiterated by Wolfe Research on new power initiative By Investing.com

Investing.com - Wolfe Research has reiterated an Outperform rating and $225.00 price target on FTAI Aviation (NASDAQ:FTAI) following the company's announcement of a new power initiative. FTAI Aviation announced the launch of FTAI Power, a new initiative focused on converting CFM56 aircraft engines into aeroderivative power turbines for electricity generation. This represents a novel product in the market, as there is currently no aeroderivative solution using the CFM56 engine type. The company has developed this new product working alongside partners and customers over more than a year. FTAI Aviation plans to deliver up to 100 turbines annually and will provide module maintenance support for the systems after installation. Wolfe Research maintained its positive outlook on the stock, noting this initiative appears to be "another profitable new outlet of growth for FTAI." The firm's price target of $225.00 remains unchanged. The research firm indicated it looks forward to learning more details about the initiative as FTAI Aviation provides additional information about this expansion into power generation technology. In other recent news, FTAI Aviation has announced the launch of its new FTAI Power platform, which will convert CFM56 aircraft engines into power turbines aimed at data centers, with production set to begin in 2026. This development is part of the company's strategy to leverage its fleet of over 1,000 engines and maintenance capabilities to meet the growing energy needs of data centers driven by artificial intelligence demand. Additionally, S&P Global Ratings has upgraded FTAI Aviation to a 'BB' rating, citing improving financial metrics and strong growth in its Aerospace Products segment. S&P projects the company's revenue to reach $2.6 billion by 2025 and exceed $3 billion by 2027, a significant rise from the less than $1.2 billion reported in 2023. Moody's Ratings has also affirmed FTAI Aviation's Ba2 corporate family rating, while upgrading the outlook to positive, highlighting improved performance and business model changes. BTIG has reiterated its Buy rating and maintained a $230 price target for the company, expressing confidence in FTAI's operational scalability after visiting its Module Factory in Montreal. These developments reflect FTAI Aviation's strategic moves and the positive reception from analysts regarding its growth potential. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.