FTAI Aviation Ltd (FTAI) shares jumped Tuesday after the company announced it's getting into the power business in perhaps the most unexpected way: converting retired jet engines into electricity turbines for data centers.
Turning Aviation Into Energy
The New York-based aircraft lessor and maintenance specialist unveiled FTAI Power, a new division that will transform CFM56 aircraft engines into 25-megawatt aeroderivative gas turbines. The target customers? Data centers and other users scrambling to meet AI-driven electricity demand that's straining traditional power infrastructure.
The CFM56 happens to be the world's largest aircraft engine platform, which gives FTAI a significant advantage. The company already owns and services more than 1,000 of these engines and operates over one million square feet of maintenance facilities. That existing scale, management believes, will allow them to produce these power turbines predictably, cost-effectively, and support over 100 units per year once production begins in 2026.
The pitch is straightforward: these converted turbines offer a flexible, lower-cost alternative to traditional large grid units, and they can be deployed in modular fashion to meet urgent power needs. With AI hyperscalers pushing electricity demand to new levels, the timing couldn't be better for rapid power solutions that don't require years of infrastructure buildout.
Wall Street Weighs In
BTIG analyst Andre Madrid reiterated a Buy rating on FTAI Aviation on Tuesday, maintaining his $230 price target. The stock is showing strong momentum, with market data indicating a Momentum score of 88.58, reflecting robust recent price performance relative to other stocks.
Price Action and Technical Levels
FTAI Aviation shares climbed 13.01% to $195.32 on Tuesday, hitting a new 52-week high. The stock reached an intraday high of $199.88, which now represents a potential resistance level for traders watching future price action. On the downside, the day's low of $176.68 could serve as near-term support if the stock experiences any pullbacks.
The current price sits well above historical resistance levels, suggesting strong upward momentum as the market digests this strategic expansion into power generation.