What Happened?
Shares of aircraft leasing company FTAI Aviation (NASDAQ: FTAI) jumped 6.5% in the afternoon session after it hit a record all-time high, driven by intense investor interest in its newly unveiled FTAI Power initiative.
This strategic segment aims to convert CFM56 aircraft engines into aeroderivative power turbines specifically designed to support the energy-intensive needs of global data centers. Analysts from firms like Compass Point and RBC Capital significantly fueled the rally by raising their price targets, reaching as high as $327, citing a potential $500 million to $1 billion boost in incremental annual EBITDA from this venture.
The stock also gained traction from robust momentum in the broader aerospace sector, where 2026 growth outlooks remain highly bullish. Investors increasingly rewarded FTAI's ability to leverage its massive engine fleet for high-margin power applications while maintaining its core aircraft leasing and maintenance services. With positive sentiment surrounding AI-related infrastructure and reports of insider share purchases, the market priced in a substantial expansion of the company's long-term earnings visibility.
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What Is The Market Telling Us
FTAI Aviation’s shares are extremely volatile and have had 48 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 16 days ago when the stock gained 8.8% on the news that the company launched FTAI Power, a venture repurposing its CFM56 aircraft engines into 25-megawatt power turbines.
Aiming to produce over 100 units annually starting in 2026, the initiative transforms existing inventory into immediate energy solutions. Investors reacted positively to this new revenue stream, which would use FTAI's maintenance expertise to meet the global surge in electricity demand. As COO David Moreno noted, this strategy turns aviation technology into a cornerstone of the AI economy's power grid. Artificial Intelligence requires unparalleled amounts of power that traditional grids often cannot provide quickly enough. By offering flexible, "plug-and-play" turbines, FTAI provides AI hyperscalers with the rapid-deployment energy necessary to fuel massive data centers.
FTAI Aviation is up 27.9% since the beginning of the year, and at $269.12 per share, has set a new 52-week high. Investors who bought $1,000 worth of FTAI Aviation’s shares 5 years ago would now be looking at an investment worth $11,403.
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