SummaryBloom Energy is positioned as a critical AI infrastructure enabler, addressing hyperscaler power constraints with modular, on-site fuel cell solutions.Q1 2026 results proved BE’s scalable model, with 130% YoY revenue growth, expanding margins, and credible upward guidance for 2026.Strategic partnerships—especially Brookfield’s $25B commitment and Oracle’s multi-GW deployments—underscore BE’s moat in rapid, financed power delivery.Despite valuation volatility and customer concentration risks, BE’s operational leverage and AI-driven demand support a long-term Buy rating. da-kuk/E+ via Getty Images
Elevator Thesis The conversation around AI infrastructure has changed, to say the least.
Semiconductors remain important as Nvidia (NVDA) continues to scale supply, and Taiwan Semiconductor (TSM) continues to add
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The upcoming report from Bloom Energy (BE - Free Report) is expected to reveal quarterly earnings of $0.39 per share, indicating an increase of 290% compared to the year-ago period. Analysts forecast revenues of $766.88 million, representing an increase of 91.1% year over year.
Over the last 30 days, there has been a downward revision of 1.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Bloom Energy metrics that are commonly monitored and projected by Wall Street analysts.
According to the collective judgment of analysts, 'Revenue- Installation' should come in at $85.92 million. The estimate indicates a year-over-year change of +129.9%.
Analysts' assessment points toward 'Revenue- Service' reaching $71.81 million. The estimate indicates a year-over-year change of +31.9%.
The consensus among analysts is that 'Revenue- Electricity' will reach $14.33 million. The estimate points to a change of +11.8% from the year-ago quarter.
Analysts predict that the 'Revenue- Product' will reach $641.95 million. The estimate points to a change of +116.4% from the year-ago quarter.
The consensus estimate for 'Gross profit (loss)- Product' stands at $242.62 million. The estimate compares to the year-ago value of $97.87 million.
The collective assessment of analysts points to an estimated 'Gross profit (loss)- Electricity' of $3.99 million. The estimate compares to the year-ago value of $5.07 million.
Analysts expect 'Gross profit (loss)- Service' to come in at $9.91 million. Compared to the present estimate, the company reported $5.04 million in the same quarter last year.
View all Key Company Metrics for Bloom Energy here>>>
Over the past month, shares of Bloom Energy have returned -29.7% versus the Zacks S&P 500 composite's +0.6% change. Currently, BE carries a Zacks Rank #1 (Strong Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Bloom Energy čelí zpoždění klíčového projektu Project Jupiter, protože regulátoři v Novém Mexiku jej podruhé zamítli a povolení stále čeká na veřejné slyšení. Projekt má využít až 2,45 gigawattu solid oxide fuel cell technologie Bloom Energy v rámci plánované investice za 165 miliard dolarů. To může posunout tržby z datových center pro AI dál do budoucna.
Artificial intelligence has turned power infrastructure into one of the market’s hottest investment themes in 2026. As hyperscale data centers multiply, companies that can supply electricity quickly have become Wall Street favorites. That enthusiasm has lifted everything from utilities to turbine manufacturers and fuel cell providers.
Yet the same growth story that fueled many of those gains is beginning to run into a less predictable obstacle: local opposition. For investors, the next phase of the AI infrastructure buildout may depend as much on regulators and communities as it does on technology. That shift matters for Bloom Energy (NYSE:BE).
Momentum Is Moving the Wrong Direction Bloom Energy has delivered an enviable return in 2026, with the stock climbing 149% year to date. Yet that headline figure hides a growing loss of momentum. Shares now sit roughly 39% below the June peak after investors began reassessing how quickly the company’s biggest opportunities can translate into revenue.
The first blow came earlier this month when a short seller questioned Bloom’s long-term growth assumptions and customer concentration. While the market didn’t fully embrace the bearish thesis, it added another layer of uncertainty just as expectations for AI infrastructure spending had become increasingly optimistic.
Now another development has put the spotlight back on execution risk.
Project Jupiter Faces Another Roadblock Oracle‘s (NYSE:ORCL | ORCL Price Prediction) proposed Stargate campus in New Mexico, called Project Jupiter, represents a planned $165 billion investment, making it one of the largest AI infrastructure projects under development. The project originally planned to rely on a natural gas-fired power plant, but following concerns from local officials and residents over emissions and water consumption, that was abandoned in favor of deploying up to 2.45 gigawatts of Bloom Energy’s solid oxide fuel cell technology.
That made the project one of Bloom’s most visible growth opportunities. Unfortunately for shareholders, the project was rejected by New Mexico regulators for a second time. Although the fuel cell approach remains under consideration, the required air permit application is still pending. The New Mexico Environment Department has ordered a public hearing, but as of mid-July no hearing date has been scheduled.
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That doesn’t necessarily kill the project. It does push revenue further into the future, which matters for a stock priced around aggressive growth expectations.
A Bigger Trend Could Matter Even More Project Jupiter may be only one facility, but it highlights a broader challenge. Communities across the country are becoming more vocal about data center construction because of concerns over electricity demand, water consumption, land use, and environmental impacts. Until recently, most opposition remained local.
Now the issue has expanded. New York recently became the first state to approve a one-year statewide moratorium on new data center construction, raising the possibility that other states could adopt similar policies.
For Bloom Energy, that’s an important development because its growth narrative depends heavily on the rapid expansion of AI data centers. Delays don’t eliminate demand for electricity, but they can postpone orders for fuel cells, stretching out revenue recognition and making quarterly growth less predictable.
Key Takeaway In short, Bloom Energy remains well positioned to benefit from AI-driven power demand, and its fuel cell technology still offers advantages over traditional natural gas generation in locations where emissions and water use are major concerns. That said, investors should recognize that regulatory approvals are becoming just as important as technological advantages.
A 149% gain this year shows investors continue to believe in Bloom’s long-term opportunity. A 39% decline from its June high shows the market is also beginning to price in execution risk. Ultimately, if more data center projects encounter permitting delays or community resistance, Bloom’s growth could arrive more slowly than many shareholders have been expecting. That’s a risk investors shouldn’t ignore, even if the long-term demand for AI power infrastructure remains intact.
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Bloom Energy spadl na 206 USD, nejníže od dubna loňského roku, a od historického maxima odepsal přes 40 %. Tržní kapitalizace klesla z 98,7 miliardy USD na 58 miliard USD kvůli obavám z ocenění a datových center.
Bloom Energy stock is moving from bad to worse as it crashed to $206, its lowest level since April last year. BE has slumped by over 40% from its all-time high as concerns about its valuation and the data center industry remained. This retreat has seen its market capitalization fall from $98.7 billion to $58 billion.
Bloom Energy is a top company that provides on-site power in various industries like retail and data centers. It counts companies like Nebius, CoreWeave, Walmart, Equinix, and Honda as clients.
While Bloom has been in the industry for over 25 years, its business has come into the limelight during the data center boom. It has inked several multi-billion-dollar deals in the past few months that have helped its stock soar to a record high.
The boom has helped its revenue surge. Its recent results showed that its revenue jumped by 130% to $751 million. This revenue growth was driven by the data center industry, a trend that may continue in the foreseeable future.
Its gross margin continued rising, reaching 30%, while its operating income jumped to $72 million. Most notably, the company is expected to continue growing in the near future.
The annual revenue is expected to jump to $3.75 billion this year, up by 85% from last year. It will then make $4.7 billion next year, up by 73% YoY. The chances are that the real figures will be higher than this, as it has done in the past few quarters.
Therefore, the stock has plunged in the past few weeks for several reasons. First, this retreat is mostly because of what is happening in the stock market, where many companies that did well during the AI boom have pulled back. This includes popular names like CoreWeave, Nebius, and SanDisk.
Second, there are concerns about the data center industry in the United States. New York has put a moratorium on new data centers, while estimates show that cancellations worth over $64 billion have been announced. These cancellations will likely impact its business in the long term.
Additionally, Wall Street is sending jitters on Oracle, which placed a large order from Bloom Energy. Oracle stock has tumbled to $124, its lowest level since April last year as concerns about its debt rose. As such, there is a risk - possibly unfounded - that Oracle may slow its data center spending over time.
Additionally, Bloom Energy is not a cheap company, with its non-GAAP forward price-to-earnings ratio being 95.60. This multiple is much higher than the energy sector median of 21. As such, the ongoing retreat could be because it is going through a valuation reset. This likely explains why the short interest has jumped to nearly 7%.
BE stock chart | Source: TradingView
BE stock has plunged from the year-to-date high of $350 to the current $206, its lowest level since April 20th. It has dropped below the lower side of the rising broadening wedge pattern.
The stock has dropped below the Major S/R pivot point of the Murrey Math Lines tool at $250. On the positive side, the stock remains above the strong, pivot, reverse level of the Murrey Math Lines and the 200-day moving average.
Therefore, all hope is not lost for the stock as the earnings season gets underway. A drop below the 200-day MA will point to more downside, potentially to the ultimate support of $125.
IDF a Oaktree oznámily projektovou investici ve výši 1,7 miliardy USD do palivových článků Bloom Energy pro výstavbu AI cloudové infrastruktury Nebius. Projekt má zajistit vyhrazené napájení přímo u zdroje.
, /PRNewswire/ -- Industrial Development Funding ("IDF") and Oaktree today announced $1.7 billion in project investment as part of a broader commitment to support the deployment of Bloom Energy's (NYSE: BE) fuel cell technology for the build-out of AI cloud infrastructure. Once complete, the project will provide dedicated behind-the-meter power, helping Nebius meet demand for the compute capacity underpinning its AI cloud platform. Nebius selected Bloom for its speed to power, clean technology, and ability to support the performance and availability demands of AI workloads.
IDF is the lead developer of the Nebius project, with minority equity participation from Oaktree. Morgan Stanley served as sole tax equity investor and placement agent for the tax equity financing, and MUFG Bank provided the senior debt financing.
"By bringing together institutional capital and critical power infrastructure, IDF and Bloom are unlocking the next generation of energy solutions and are proud to help Nebius meet the energy demands of the AI economy," said Nik Nunes, Chief Executive Officer of IDF.
Austin Pearson, Oaktree Managing Director, said, "Oaktree is focused on investing in infrastructure assets delivering critical power to the digital space. This transaction reflects our confidence in Bloom's fuel cell technology and those relying on it."
"AI infrastructure customers need more than innovative technology," said Aman Joshi, Chief Commercial Officer of Bloom Energy. "They also need a path to finance and deploy power rapidly. Our collaboration with IDF demonstrates how institutional capital can help accelerate the build-out of AI infrastructure."
"Morgan Stanley is proud to partner with IDF, Bloom Energy and Nebius on this landmark behind-the-meter transaction delivering rapid power solutions to critical AI infrastructure," said Jorge Iragorri, Co-Head of Infrastructure Capital Markets at Morgan Stanley.
"MUFG is pleased to support Nebius, IDF, and Bloom on this landmark transaction, which provides an innovative and efficient solution for data center power demand while meeting the needs of the local community," said Fred Zelaya, Managing Director – Project Finance.
Today's announcement reflects IDF's broader strategy to invest in clean energy, digital infrastructure, transportation, and industrial sectors through bespoke capital solutions. It expands collaboration between IDF and Bloom Energy that has enabled multiple transactions and a diversified portfolio of over $2.6 billion in Bloom Energy projects.
About Industrial Development Funding
Industrial Development Funding, LLC ("IDF") is an investment advisor registered with SEC that manages capital for Qualified Institutional Buyers. IDF's proprietary funding solutions enable large industrial companies to sell existing products or introduce new products to the marketplace. IDF provides bespoke capital solutions to companies across the digital infrastructure, power and transportation sectors. Website: www.indevfunding.com.
About Oaktree Capital Management
Oaktree is a leader among global investment managers specializing in alternative investments, with $224 billion in assets under management as of March 31, 2026. The firm emphasizes an opportunistic, value-oriented, and risk-controlled approach to investments in credit, equity, and real estate. The firm has more than 1,500 employees and offices in 26 cities worldwide. For additional information, please visit Oaktree's website at http://www.oaktreecapital.com/.
Media contacts
Industrial Development Funding
Doug Rivenburgh ([email protected])
Oaktree Capital Management
Rachel Wood ([email protected])
Bloom Energy rozšířila s Brookfield Asset Management financování na nasazení palivových článků z 5 miliard USD na 25 miliard USD. Jde o rámec financování pro AI datová centra, ne o okamžité tržby.
Take a second and imagine the nearly 3,000 data centers currently under construction or planned in the U.S. all being finished at about, or nearly about, the same time. What a great day for artificial intelligence (AI) companies that will be, right? Yes, but only if they can solve a pesky bottleneck that threatens to derail their plans: power supply.
Let me rephrase the problem like this (and then we'll get to the stock under consideration): A hyperscale data center can take about two to three years to finish, yet it can take anywhere from four to five years or more to connect that center to the electric grid.
Those aren't numbers I pulled out of my head. They come from a recent article published in Energy Reports, which also adds this as a solution: "To address this challenge, scalable transmission switchyards and on-site power generation solutions are critical."
I don't write much about "scalable transmission switchyards" (yet), but one company I cover has been supplying "on-site power generation" to customers for years. That stock is Bloom Energy (BE 4.74%), and the rampant data center build-out mentioned above has just helped them expand a multibillion-dollar agreement fivefold.
Image source: Bloom Energy.
A financing framework that removes a major hurdle Bloom Energy sells solid oxide fuel-cell systems -- essentially modular boxes that produce on-site power. These boxes, or servers, essentially convert fuel such as natural gas into electricity without combustion. The company has already deployed servers at over a thousand sites in nine countries, and, as its recent deals suggest, deployments could accelerate considerably.
Last October, Bloom announced a partnership with Brookfield Asset Management (BAM +1.19%). Under the terms of this agreement, Brookfield committed up to $5 billion to finance deployments of Bloom's fuel cell technology and named Bloom its preferred provider of on-site power for AI infrastructure.
Recently, at the end of June, Brookfield decided that demand for data centers wasn't weakening and expanded the original financing deal to $25 billion.
Obviously, $25 billion sounds like a lot. But don't overlook that important qualifier. This deal is a financing framework, not a commitment to revenue. Bloom isn't getting $25 billion upfront from Brookfield. Instead, it's getting a promise that Brookfield will help potential customers of Bloom finance the fuel cell maker's servers, which aren't cheap.
That financing can turn into revenue over time, but it's important that investors don't mistake it for sales yet.
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Bloom stock has fallen about 29% since the news broke, mainly due to general market volatility and a recent short-seller report. As such, Bloom currently trades around its level at the beginning of June, just before it climbed 40%.
For long-term investors, now might be a good time to buy Bloom. The demand for on-site power generation isn't going away anytime soon, and the Brookfield financing is making it easier for potential customers to adopt Bloom's technology. Expect short-term volatility, but over the long run, this energy stock is poised for growth.
Bloom Energy čelí short-seller reportu, který zpochybňuje jeho tvrzení o nezávislosti na čínském skandiu. Firma uvedla, že report prověřuje a plánuje reagovat.
Editor’s note: This story has been updated to include a statement from Bloom Energy.
Bloom Energy told Benzinga that the company is aware of the report “published by a media outlet affiliated with an investment firm that has disclosed it may hold positions designed to profit from a decline in Bloom’s stock,” and plans to issue a response.
“We are reviewing the report and will correct the record. Bloom’s fuel cell platform is supported by a diversified, multi-country supply chain built over two decades, long-standing commercial relationships, and proprietary materials-recovery technology, as described in our public filings and our July 7 blog post on scandium oxide,” a Bloom Energy spokesperson said.
Executive Supply Chain Claims ContradictedThe decline follows findings by Hunterbrook challenging statements made by Bloom Energy CEO KR Sridhar regarding the company’s independence from Chinese materials.
Sridhar stated during an April 2025 earnings call, “We are not dependent on China for scandium,” adding, “there is no China supply chain for us.”
However, global trade data, corporate filings, and satellite imagery analyzed by the news outlet indicate that the fuel-cell manufacturer continues to rely on Chinese-sourced scandium, said Hunterbrook.
Hidden Routes And Supplier ConnectionsHunterbrook traced four separate China-linked routes delivering scandium into the manufacturer’s supply chain.
Deliveries involve direct shipments of scandium oxide from Hunan Oriental Scandium to a Delaware plant, as well as intermediaries routing materials through Thailand, Japan, and South Korea.
A sales representative from Hunan Oriental Scandium told reporters, “We are also BE’s largest supplier of scandium,” noting the material is “not exported directly.”
Widening Deficits And Delayed ProjectsHunterbrook’s supply-demand model indicates a looming global deficit for fuel-cell-grade scandium oxide.
The research shows Bloom Energy alone requires roughly 220 tons of scandium oxide to meet the 5 gigawatt production expectations modeled by Wall Street, while the total projected global supply reaches approximately 240 tons.
BE Stock Price Activity: Bloom Energy shares were down 9.89% at $242.91 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo by Michael Vi via Shutterstock
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
Bloom Energy a Brookfield rozšířily plán investic do AI energetické infrastruktury z 5 miliard USD na 25 miliard USD. Cílí na rychlejší výstavbu napájecí infrastruktury pro datová centra.
Key Takeaways Bloom Energy and Brookfield expanded AI power infrastructure plans from $5B to $25B.AI workloads need uninterrupted power, making energy availability a key data center bottleneck.Bloom Energy's fuel cells can add on-site data center capacity within months, not years. Bloom Energy (BE - Free Report) and Brookfield have significantly expanded their strategic partnership, increasing the planned deployment of AI-related power infrastructure from $5 billion to $25 billion. The fivefold expansion reflects the surging demand for reliable, scalable electricity as artificial intelligence fuels a global wave of hyperscale data center development.
AI training and inference workloads require vast amounts of uninterrupted power, making energy availability one of the industry's biggest bottlenecks. The partnership is aligned with Brookfield's AI Infrastructure Fund, launched in November 2025, with a target of deploying $100 billion across AI factories, power infrastructure, compute assets, and strategic partnerships. Brookfield has already invested more than $100 billion in digital infrastructure and clean energy, reinforcing its leadership in AI-enabling assets.
Bloom Energy is well-positioned to benefit from this trend through its solid oxide fuel cell technology, which enables on-site power generation much faster than conventional grid expansion. By allowing data center operators to add capacity within months rather than waiting years for utility upgrades, Bloom Energy offers a compelling solution to one of AI's most pressing infrastructure challenges.
The expanded partnership enhances Brookfield's exposure to one of the fastest-growing areas of the digital economy while improving Bloom Energy's long-term revenue visibility. More broadly, the agreement highlights a key investment theme: AI's continued growth depends not only on advanced semiconductors but also on dependable energy infrastructure. Companies providing reliable, lower-emission, and rapidly deployable power solutions are likely to be among the biggest beneficiaries of the next phase of AI-driven investment.
Rapid Deployment Driving Growth in Alternative EnergyQuick deployment of energy systems allows alternative energy companies like Plug Power (PLUG - Free Report) and FuelCell Energy (FCEL - Free Report) to meet rising demand efficiently, secure long-term contracts and scale operations faster. This agility enhances revenue streams, strengthens customer relationships and supports overall financial growth in the clean energy sector.
Plug Power and FuelCell benefit from rapid deployment by quickly delivering hydrogen and fuel cell solutions to industrial and commercial clients. Fast installations help secure long-term contracts, accelerate market penetration and reduce time-to-revenues. This agility strengthens customer relationships and positions Plug Power and FuelCell for sustained growth in the expanding clean energy market.
BE’s Price PerformanceShares of BE have rallied 211.8% in the year-to-date period, outperforming the industry.
Image Source: Zacks Investment Research
BE’s Expensive ValuationBloom Energy is currently trading at a premium valuation. Its forward 12-month price-to-sales (P/S) ratio of 15.5X is higher than the industry’s 5.3X.
Image Source: Zacks Investment Research
Estimate Movement for BEThe Zacks Consensus Estimate for BE’s second-quarter and third-quarter 2026 earnings per share (EPS) witnessed no movement in the last 30 days. While the earnings estimate for 2026 witnessed no movement, the same for 2027 moved 1% north in the last 30 days.
Shares of Bloom Energy (BE 6.47%) are up more than 250% so far this year. That quick rise may make some investors cautious, but there are plenty of solid reasons for the stock's ascendance. The company is at the nexus of renewable energy and artificial intelligence (AI), as its fuel cell energy solutions are increasingly used by hyperscalers to address bottlenecks in powering new data centers.
Are there risks to the stock? Most definitely. It trades at more than 140 times forward earnings, as investors have largely priced in its backlog. Even so, here are three reasons why Bloom Energy is worth buying -- and why the stock should continue to generously reward investors.
Image source: Getty Images.
Bloom's solid oxide fuel cells can be deployed quickly Microsoft, Alphabet, Meta Platforms, and Oracle are spending billions on next-generation AI data centers, but traditional electrical grids are severely bottlenecked. Expanding a localized grid or waiting on a nuclear plant can take years.
Bloom's solid oxide fuel cells generate on-site electricity and can be deployed and operational in as little as 90 days. By bypassing traditional power grids, tech companies ensure their high-dollar AI chips don't sit idle waiting for power.
These fuel cells use renewable natural gas, biogas, or hydrogen, converting it to electricity without combustion and with minimal carbon dioxide emissions.
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It has a huge backlog with big tech Bloom's growth is no longer a speculative story; it is backed by concrete, massive commercial contracts. As of the end of 2025, the company said it had a backlog of $20 billion, including a product backlog of $6 billion.
In April, Bloom expanded its agreement with Oracle to support up to 2.8 gigawatts (GW) of fuel cell capacity. This includes Project Jupiter, a massive, multigigawatt AI data center campus in New Mexico that runs entirely on Bloom fuel cells rather than traditional gas turbines or diesel generators.
In May, Bloom secured a 328-megawatt (MW) deployment deal with AI infrastructure company Nebius, providing deep multiyear visibility for revenue generation.
It has reached a financial turning point Historically, fuel cell companies have struggled to turn a profit despite rising revenue. Bloom is actively breaking out of that mold, showcasing real operating leverage. In its first-quarter earnings release, Bloom reported a record $751.1 million in revenue, a massive 130.4% year-over-year increase.
Driven by manufacturing-scale benefits, its gross margin expanded beyond 30%, allowing the company to report net income of $70.6 million, up from a loss of $19.1 million in the first quarter of 2025. Earnings per share (EPS) were $0.23, compared to an EPS loss of $0.10 in the same quarter a year ago, while adjusted EPS was $0.44.
The earnings were a surprise to some analysts, who had predicted revenue of $539.94 and adjusted EPS of $0.12. The numbers were strong enough to prompt management to raise its full-year revenue guidance to $3.4 billion to $3.8 billion, an increase of 80% at the midpoint, and to raise adjusted EPS to between $1.85 and $2.25, up 170% at the midpoint.
Things to look out for Bloom has a few issues, but they're mostly good concerns. The company will have to spend to double factory capacity from 1 gigawatt to 2 gigawatts by the end of 2026. It also faces competition from Plug Power and FuelCell Energy.
The premium attached to Bloom Energy is massive and introduces considerable valuation risk, but it is supported by triple-digit revenue growth and positive cash generation, whereas Plug Power is an improving turnaround play with tight cash constraints, and FuelCell Energy remains trapped in a pattern of shrinking revenue and widening losses.
In the long run, given the push for renewable energy and the way AI is driving the need for more data centers, Bloom is in a good spot to benefit from long-term trends.
Bloom Energy rozšířila s Brookfield Asset Management dohodu z 5 miliard USD na 25 miliard USD pro AI infrastrukturu. Kapitál má podporovat projekty využívající její energetické servery.
Bloom Energy (BE 6.47%) has launched into the stratosphere.
The clean energy stock started 2026 trading at about $98 per share. Since then, it has nearly tripled to about $289 per share.
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Bloom's momentum was driven by a flurry of exciting news. The company inked and expanded strategic deals with Nebius and Oracle, while also reporting explosive revenue growth and raising its outlook for the remainder of 2026.
Image source: Bloom Energy.
The second half of 2026 has already gotten off to a good start. On June 30, the company expanded its $5 billion deal with Brookfield Asset Management to $25 billion. This, of course, is a financing for AI infrastructure projects, not direct revenue to Bloom. But since that capital will only go to projects that use Bloom's energy servers, it should, in the end, contribute significantly to Bloom's top-line growth.
Still, Bloom has a lot to prove in the second half of 2026 and beyond. Foremost, it needs to show Wall Street that it can translate these exciting partnerships and deals into sustained revenue growth that improves profitability and cash flow.
After its stellar run over the last year, Bloom is trading at a premium, with a forward price-to-earnings (P/E) figure of about 147. Bloom reports second-quarter earnings at the end of July, and another blowout quarter could push this stock to new heights. At the same time, investors should maintain caution, as the stock's pricy valuation could invite downward pressure if the price runs ahead of fundamentals.
Steven Porrello has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, and Oracle. The Motley Fool has a disclosure policy.
Key Takeaways Bloom is a microcosm of how AI-bearish economists & analysts have missed the fundamental demand driversWatch my video to see where I have identified key "buy zones" for Bloom Energy (BE) in May and JuneBrookfield CEO Bruce Flatt, the financier of AI infrastructure investing, just 5X'ed his Bloom bet I have written about Bloom Energy ((BE - Free Report) ) several times recently as the Bull of the Day. And it seems like every other week gives me a new to reason to update this incredible growth story with bullish deal news and a fresh angle on a 21st century American company that evolved from fringe obscurity and Wall Street disbelief to a profitable large cap provider of clean, mobile, on-demand energy for datacenters.Cutting to the chase, the two big news items for Bloom in the past week were (1) inclusion into the Russell 1000 large cap index (a metrics-based index unlike the S&P 500's "committee" selection) and (2) an expansion of their AI infrastructure partnership with Brookfield (
(BN - Free Report) ) to $25 billion -- a fivefold increase since their initial strategic alliance in October!From the June 30 press release...
"The expanded partnership reflects strong and sustained demand from hyperscalers and AI infrastructure developers for fast, reliable, and community-friendly power. It brings together Brookfield’s global leadership in AI infrastructure development, access to capital, and operating scale with Bloom’s rapidly deployable onsite power platform. Together, the companies continue to advance a new model for AI factories that integrates power, compute, data center infrastructure, and capital from the outset."
And this statement from Sikander Rashid, Head of AI Infrastructure at Brookfield, sums up the vision and strategy of the $1 trillion asset manager as they seek to become an integral part of the AI buildout, behind the scenes of the "hyperscaler" headlines...
“Scaling our commitment with Bloom Energy reflects both the strength of this partnership and the conviction behind our broader AI infrastructure strategy, including integrated compute. Scaling this partnership further strengthens Brookfield’s position as one of the leading global AI infrastructure investors, capable of delivering end-to-end solutions, from electrons to tokens, for some of the world’s most sophisticated customers.”
Regarding the Russell rebalance that occurred last weekend, it created a great opportunity to buy more BE shares as the stock had just made new highs on Thursday June 25 above $350 and then reversed hard into Friday as Russell 2000 small-cap managers and benchmarkers had to sell their shares.
Investors who jumped on prices below $275 will be well-rewarded, just as my TAZR Trader group has been buying on every dip under $250. Indeed, on Thursday July 1, Evercore ISI raised their price target on BE to a new Street-high of $350 and I think that will be eclipsed again before the year is done.
Evercore analyst Nicholas Amicucci said that Bloom’s ability to provide reliable, dispatchable power to a "volatile demand profile" differentiates it from competitors.
From Electrons to Tokens
Bloom Energy empowers enterprises to meet soaring energy demands and responsibly take charge of their power needs. The company’s solid oxide fuel cell (SOFC) systems provide ultra-reliable, clean, and highly scalable onsite electricity using natural gas and hydrogen for combustion-free fuel.
Bloom has Fortune 500 customers around the world, including data centers, semiconductor manufacturing, large utilities, and other commercial and industrial sectors as well as mission-critical organizations in local communities, such as hospitals, college campuses and retailers. Headquartered in Silicon Valley, Bloom Energy employs more than 2,000 people worldwide and manufactures its systems in the United States.
The gap that Bloom fills right now sits between surging demand for fast, on-site, "behind the meter" (off-grid) power and how long it takes to get permits and hardware for either gas turbines from GE Vernova (
(GEV - Free Report) ) or power connections to local grids. Bloom's SOFCs can be installed in less than 90 days. Semiconductor engineer, analyst, and investor Ben Pouladian (@benitoz on X), who often gets access to key NVIDIA (
(NVDA - Free Report) ) technology leaders, posted this on X June 30..."Brookfield just took its Bloom Energy commitment from $5B to $25B in eight months. Fivefold.
Read the quote, not the headline
Brookfield's head of AI infra: "end to end solutions, from electrons to tokens"
That is the Electrons To Tokens trade. A trillion dollar allocator bought the front of the Token Dollar loop, the behind the meter watt. The fifth straight deal into the same name in eight months
Same loop. Now with a buyer naming it."
What he means by "fifth straight deal" is that Bloom has also been inking key partnerships with other energy infrastructure players like AEP. In January, American Electric Power (
(AEP - Free Report) ) announced a $2.65B SOFC deal with Bloom. You can read more about that AEP deal, plus notes from Bloom's 2026 Data Center Power Report, in this June 16 Bull of the Day article where I describe that "Bloom's story is a microcosm of how the AI-bearish economists & analysts have missed the fundamental demand drivers."
And here's my recent video on Bloom where I identified key "buy zones" for BE in May and June.
Rocket Scientist Takes On the Skeptics
To truly appreciate where Bloom sits today, you have to look back at the roots of KR Sridhar's vision -- which actually started on another planet.
Before he was a Silicon Valley entrepreneur, KR Sridhar was a literal rocket scientist. He grew up in India, experiencing the frequent, unpredictable power grid failures common to the region at the time. After moving to the U.S. and earning his PhD in mechanical engineering, he became the director of the Space Technologies Laboratory at the University of Arizona.
In the 1990s, Sridhar led a project for NASA to build an oxygen-generating machine for a future manned mission to Mars. His device used a solid oxide ceramic technology: it took in the carbon dioxide from the Martian atmosphere, pumped in electricity, and split the molecules to generate breathable oxygen.
But in 1999, the Mars Polar Lander crashed. NASA subsequently canceled the mission, and Sridhar's project was effectively mothballed.
Instead of letting the technology die, Sridhar had an epiphany: He realized he could run the entire process in reverse. If you take that exact same solid oxide ceramic material, feed oxygen into one side and a fuel source (like natural gas or hydrogen) into the other, it creates a chemical reaction that produces electricity -- without combustion, without smoke, and entirely off the traditional transmission grid.
In 2001, he co-founded Ion America (later renamed Bloom Energy).
The Era of Total Secrecy & Skepticism
For nearly a decade, Bloom Energy operated in absolute stealth mode. Sridhar’s headquarters had no sign on the building, a completely cryptic website, and zero public progress reports.
The skepticism from the energy sector and Wall Street during this era was immense. Fuel cells had long been considered the "Holy Grail" of clean tech, but they were notoriously plagued by three massive roadblocks:
>>Cost: Traditional fuel cells required precious metals like platinum.
>>Durability: Early iterations degraded rapidly, sometimes lasting less than two years.
>>Scale: They simply couldn't generate enough continuous, reliable baseline power to justify their massive price tags.
Most experts assumed Bloom was just another Silicon Valley "fake-it-till-you-make-it" hype machine backed by venture capital.
The Infamous 2010 60 Minutes Unveiling
The curtain finally lifted in February 2010, when Sridhar invited 60 Minutes correspondent Lesley Stahl into his lab for the first-ever public look at the "Bloom Box."
The segment became an instant piece of Silicon Valley lore. Sridhar demystified the "secret sauce," showing Stahl how he baked everyday sand into thin ceramic squares and painted them with green and black proprietary inks. Instead of platinum, Sridhar utilized a cheap metal alloy to separate the disks.
During the broadcast, Sridhar and his legendary venture capital backer, John Doerr, laid out an incredibly ambitious, and highly criticized, vision:
"The Bloom box is intended to replace the grid... for its customers. It's cheaper than the grid, it's cleaner than the grid."
~John Doerr to Lesley Stahl, 2010Sridhar confidently predicted that within five years, a small, $3,000 version of the box would sit in every American backyard, powering homes completely wirelessly.
The Backlash
The 60 Minutes episode was treated as a massive teaser just ahead of their official corporate launch, but it also painted a target on Bloom's back. Critics noted that early large-scale units cost upwards of $700,000 to $800,000 each. The dream of a cheap consumer backyard box never materialized.
For years after that interview, Wall Street disbelief grew. Detractors pointed out the heavy reliance on state and federal clean-energy subsidies, brief product lifespans, and billions of dollars in cumulative corporate losses as proof that the technology "would never work" profitably at scale.
The Data Center Redemption Arc
What critics in 2010 didn't fully anticipate was how the nature of electricity demand would evolve. Bloom's initial residential dream faded, but Sridhar pivoted aggressively toward enterprise, industrial, and mission-critical commercial buyers who cared less about cheap backyard novelties and more about uninterrupted baseline power.
Early testers mentioned in that 60 Minutes piece -- like Google, eBay, and FedEx -- were looking for alternative, efficient footprints. eBay's CEO noted at the time that just five Bloom Boxes on their campus produced five times as much usable, consistent 24/7 electricity as their entire footprint of over 3,200 rooftop solar panels.
Fast forward to today, and that 24/7, high-efficiency footprint is exactly why Bloom has transitioned from a speculative clean-tech longshot into a large-cap player. With the explosion of AI datacenters drawing immense amounts of power from already strained regional grids, Sridhar's long-fought, multi-decade struggle to perfect solid oxide fuel cells has found its ultimate product-market fit.
Reminds me of another rocket scientist named Elon who the experts laughed at.
Kevin Cook is a Senior Stock Strategist for Zacks Investment Research where he runs the TAZR Trader portfolio and has been investing in Bloom Energy (BE - Free Report) since $70. TAZR also owns other key AI infrastructure players like NVDA, TSM, MU, LITE, and OUST.
Bloom Energy vstoupila do roku 2026 s backlogem objednávek na palivové články 6 miliard USD, meziročně více než 2,5násobným. Celkový backlog činí 20 miliard USD, z toho 14 miliard připadá na služby.
Bloom Energy (BE 4.51%) is perfectly positioned for the artificial intelligence spending boom underway today. In fact, the company's backlog for hydrogen fuel cells at the start of 2026 rose over 2.5x year over year, hitting $6 billion. But the real story here is the other $14 billion of the total $20 billion backlog, which is related to services.
What does Bloom Energy do? Bloom Energy makes hydrogen fuel cells. They are built in a factory and can be delivered wherever they are needed to provide on-site power. The power generated doesn't produce greenhouse gases, either, so it is clean energy. The company has been building its business and improving its technology for many years, but the current environment is almost the perfect setting for success.
Image source: Getty Images.
Spending on artificial intelligence (AI) has exploded. But AI is just a fancy computer program, so it can't operate without electricity. Electric utilities are working to supply the power needed, but building electric infrastructure takes time. And there has been pushback from consumers and regulators around the impact that AI demand is having on power prices.
Bloom Energy's on-site power lets AI companies sidestep the grid. And Bloom Energy can usually deliver power cells more quickly than a utility can provide a grid connection, speeding up the construction of new AI data centers. No wonder the company started 2026 with a $6 billion backlog of fuel cell orders, up 2.5x year over year.
Bloom Energy's real flywheel is services That said, the company's full backlog is around $20 billion. The other $14 billion relates to the service contracts that accompany the sale of a fuel cell. These are long-term contracts that provide annuity-like income streams. Each new product sale builds the company's long-term service momentum. Although Bloom Energy is really just a start-up that has yet to turn sustainably profitable, that could change very soon.
Today's Change
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The only problem with Bloom Energy's story is that it is so well-known on Wall Street. The stock is up over 1,000% over the past year. Without sustainable earnings, the price-to-earnings ratio isn't meaningful. However, the price-to-sales ratio is shockingly high at 29x, compared to a five-year average of 3.1x. The forward P/E ratio is 134x. That is high and shows just how much investors are expecting from the company.
Bloom Energy is probably best left on your wishlist for now, given the stock's rapid ascent. However, if the AI bubble on Wall Street bursts, Bloom Energy's massive service backlog could make it worth a second look.
FuelCell Energy (NASDAQ:FCEL) stock is up 23% to $36.64 in early Tuesday trading, extending a powerful June rally. Bloom Energy (NYSE:BE) stock is up 7% to $293.61, climbing in sympathy with the broader fuel-cell complex.
Plug Power (NASDAQ:PLUG) stock is up 5% to $2.72, a decent-sized move but PLUG is still a relative laggard amid the sector-wide rally. The fresh catalyst is FuelCell Energy’s inclusion in the Russell 2000 and Russell 3000 indices in the latest reconstitution.
Both names entered today’s session with enormous gains already on the board. FuelCell Energy stock is up 346% year to date, while Bloom Energy stock is up 233% over the same window. A single-session move tied to a mechanical index event doesn’t by itself change the long-term thesis.
Russell Inclusion Adds to an Already Stacked Catalyst List Russell inclusion puts FuelCell Energy on the radar of passive index funds and ETFs benchmarked to the Russell 2000 and Russell 3000. That mechanical flow lands on top of an unusually loaded news week for the company.
Last week, FuelCell Energy announced a landmark agreement to supply Fit Energy up to 380 MW of power solutions for AI data centers and digital infrastructure. The company also secured a $49 million non-dilutive financing package from the U.S. Export-Import Bank to deploy five 2.8 MW energy blocks for Gyeonggi Green Energy in South Korea, with two tranches running through October.
Analyst sentiment has flipped quickly. B. Riley upgraded FuelCell Energy stock to Buy from Neutral and more than doubled its price target to $32 from $13. Jefferies upgraded the stock to Buy, noting that FuelCell trades at a significant discount to Bloom Energy, while UBS reiterated a bullish stance citing the Fit Energy deal and plans to scale Torrington manufacturing to 500 MW annually.
Retail message volume around FuelCell Energy is reportedly up over 1,000% in 24 hours, with traders openly comparing the setup to Bloom Energy’s earlier playbook. That’s community sentiment, not an established fundamental driver, and investors can treat it accordingly.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Plug Power didn't make the cut. Grab the names FREE today.
BE and PLUG Rebound After Last Week’s Selloff Bloom Energy stock sold off last week as profit-taking gripped the high-flyer. Today’s 7% bounce looks like a relief rebound paired with sympathy buying as the fuel-cell narrative draws fresh attention.
The underlying business remains the strongest in the peer group. Bloom Energy reported Q1 FY2026 revenue of $751 million, up 130% year over year, and raised full-year revenue guidance to a range of $3.4 billion to $3.8 billion.
There’s no fresh Bloom Energy-specific catalyst today. The stock is trading on sector momentum, technical mean reversion, and the halo from FuelCell Energy’s index news rather than any new business development. Plug Power stock also appears to be catching a sympathy bid, at least for today’s session, after a last week’s rocky ride.
What to Watch Index-driven flows tend to peak around the reconstitution print and fade quickly afterward. Investors can watch for whether FuelCell Energy stock holds today’s gains into the close or gives ground into the afternoon as the mechanical bid clears.
Volatility is the rule with these names. FuelCell Energy carries a beta of 2.4 and remains loss-making, with the latest quarter weighed down by a $43 million non-cash impairment. Investors may want to keep their position sizes modest given the speed of the move and the mechanical nature of today’s catalyst.
The next real test for FuelCell Energy comes from execution on the Fit Energy ramp and conversion of the 4 GW proposal pipeline into firm backlog. Traders can keep an eye on FuelCell Energy stock through the afternoon, while longer-term holders may focus on contract conversion rather than index mechanics.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Plug Power didn't make the cut. Grab the names FREE today.
FuelCell Energy získala od Export-Import Bank of the United States schválení financování ve výši 49 milionů USD a během dne vzrostla. Bloom Energy se zároveň prudce odrazila po pátečním poklesu.
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This Unlikely Growth Stock Is Breaking Out. It Has Nothing To Do With AI — Yet
Stock Market Week Ahead: Rotating, For Now, Away From The AI Boom FuelCell Energy (FCEL) announced it secured key government financing on Monday and received a massive price-target hike. Meanwhile, Bloom Energy (BE) graduated to a large-cap Russell index. Intraday, FuelCell Energy stock flashed a bullish signal as it broke out. Bloom Energy stock rebounded sharply from Friday's slide. The Export-Import Bank of the United States approved a $49 million financing package…
Bloom Energy letos vzrostla téměř o 275 % díky poptávce po AI infrastruktuře a novým zakázkám na palivové články. V prvním čtvrtletí tržby stouply o 130,4 % na 751,1 milionu USD.
Bloom Energy's (BE +7.03%) stock has transformed from being an overlooked fuel cell company to one of the most closely watched artificial intelligence (AI)-driven power plays.
Shares of the company are up nearly 275% so far in 2026, pushing the market capitalization to about $93 billion. This is a steep valuation for a company guiding for $3.4 billion to $3.8 billion in fiscal 2026 revenue.
So the question is whether Bloom's AI power opportunity can justify its valuation.
Image source: Getty Images.
Bloom is solving a real AI infrastructure problem AI data centers need massive amounts of reliable power, and the electricity grid cannot always provide it quickly. The International Energy Agency expects global data center electricity use to roughly double from 2024 levels to around 945 terawatt-hours by 2030.
Bloom's on-site fuel cell systems are increasingly relevant, as they can help customers add power faster than waiting for new grid infrastructure. Oracle has already signed up for an initial 1.2 gigawatts of Bloom's fuel cell capacity for projects in the U.S., with the broader agreement leaving room for that figure to rise to as much as 2.8 gigawatts. The company claimed that it delivered a fully operational Oracle fuel cell system in just 55 days in 2025, ahead of the expected 90-day schedule.
Oracle, BorderPlex Digital Assets, and Bloom's Project Jupiter further strengthen the story. The New Mexico AI data center campus is expected to use up to 2.45 gigawatts of Bloom fuel cell capacity instead of planned gas turbines and diesel generators. The setup could provide faster onsite power, dramatically lower local emissions, and use negligible water.
Additionally, Brookfield Asset Management plans to invest up to $5 billion to deploy Bloom's technology for AI infrastructure. American Electric Power has agreed to buy up to 1 gigawatt of Bloom fuel cells, starting with a 100-megawatt order. Hence, electric utility companies and infrastructure investors are also seriously considering Bloom.
The financials are also improving. In the first quarter , Bloom's revenue rose 130.4% year over year to $751.1 million. Gross margin reached 30%, operating margin was 17.3%, and operating cash flow was $73.6 million. Bloom also exited fiscal 2025 with roughly $6 billion of product backlog and $14 billion of service backlog.
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Risks cannot be ignored Bloom currently trades at a rich valuation of nearly 38 times trailing 12-month sales. The company is also exposed to significant customer concentration risk. In Q1, two customers accounted for about 50% and 12% of total revenue.
So while Bloom has become a major AI infrastructure supplier with strong customer validation and rapidly improving numbers, the easy money may already have been made after its sharp 2026 rally. Investors interested in the stock may be better off building a position gradually, rather than buying aggressively after such a large move.
Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, and Oracle. The Motley Fool has a disclosure policy.
FuelCell Energy vyskočila o 24 % po oznámení strategické dohody s Fit Energy na až 380 MW čisté, baseload on-site energie pro datová centra. Bloom Energy naopak klesla o 13 % po realizaci zisků.
Shares of FuelCell Energy (NASDAQ:FCEL) are up 24% to $24.45 in midday trading Friday, while Bloom Energy (NYSE:BE) stock is down 13% to $268.65. It’s a rare same-session split for two fuel cell peers that typically trade together on AI data center power sentiment.
The FuelCell Energy catalyst is concrete: a marquee data center power agreement with Fit Energy. The Bloom Energy slide looks more like a profit-taking unwind layered on competitive rotation as capital chases the day’s deal winner.
FuelCell Energy and Bloom Energy both sit at the center of the AI power buildout, and shares of each have had violent runs heading into this session. The pattern is familiar in high-beta themes like FCEL and BE, where sentiment can pivot hard on a single contract announcement.
FuelCell Energy’s 380 MW Deal Drives the Move FuelCell Energy announced a strategic agreement with Fit Energy for up to 380 MW of clean, baseload on-site power for data centers. The deal includes an immediate deposit for an initial 30 MW, with delivery slated to begin in late 2026, plus warrants tied to future deployment milestones. That structure gives FuelCell Energy a near-term revenue trigger and upside tied to scale.
The deal validates FuelCell Energy’s pivot toward AI infrastructure. Management has flagged a commercial pipeline of roughly 4 GW, with 90% tied to data centers. The company is also funding a $200 million to $275 million expansion of its Torrington, Connecticut facility to push annualized capacity to 500 MW.
Analyst sentiment has been catching up. Canaccord Genuity upgraded FuelCell Energy stock to Buy with a $30 price target following the Q2 FY2026 report, citing positioning in AI data center power. CEO Jason Few has framed the strategy as “extending the grid to data centers,” a pitch that fits the AI infrastructure narrative driving today’s tape. Impressively, FCEL stock is up 307% over the past year.
Bloom Energy Cools After a Parabolic Run Bloom Energy stock entered Friday already in retreat after a profit-taking reversal in the prior session, so today’s slide extends a two-session unwind. Coming in, Bloom Energy was up 1,331% over the past year, so single-day air pockets come with the profile.
The competitive subtext matters too. FuelCell Energy’s Fit Energy win lands on the same data center turf Bloom Energy has dominated through its Oracle (NYSE:ORCL | ORCL Price Prediction) collaboration and a $5 billion Brookfield AI-infrastructure partnership. Bloom Energy’s fundamentals remain strong, with Q1 2026 revenue of $751 million, up 130% year over year, and FY2026 guidance raised to $3.6 billion.
Ultimately, trader positioning shifted faster than the fundamentals today. With Bloom Energy stock carrying a forward earnings ratio near 156x, a sharp pullback on rotation pressure fits the profile of a name that has run this far this fast. The product backlog still stands at roughly $6 billion, so today’s move is about price action, not the order book.
What Investors Can Watch From Here For FuelCell Energy, the next test is execution. Converting that 4 GW pipeline into actual revenue, and meeting the late-2026 delivery start on the Fit Energy initial 30 MW, are the concrete milestones. Investors can watch for follow-on data center agreements that confirm today’s narrative, plus any analyst price target revisions ahead of the next earnings report.
For Bloom Energy, the read is more about positioning than fundamentals. Investors may want to watch analyst valuation commentary in the coming sessions, given the size of the prior rally and the new competitive data point from FuelCell Energy. Bloom Energy stock carries a beta of 3.7, so risk-management discipline matters for anyone sizing fresh exposure.
The bigger picture: the on-site power thesis for AI data centers remains intact across both FuelCell Energy and Bloom Energy. Today’s divergence is more about who owns the next headline than a structural shift in the sector. Stock traders can keep their position sizes modest given the volatility both stocks just put on display, and they may want to track whether FuelCell Energy stock’s gap holds into next week.
Jim Chanos varuje, že AI energetický boom je spíš dočasné úzké hrdlo než trvalý nedostatek. Bloom Energy mezitím těží z poptávky datacenter po rychlém napájení na místě.
The AI infrastructure boom has created a new class of market winners. Chipmakers, data center operators, and power suppliers have all benefited as hyperscalers race to build the computing capacity needed to train and run artificial intelligence models. Yet every boom attracts skeptics.
This time, famed short-seller Jim Chanos is challenging one of Wall Street’s hottest investment themes: the idea that alternative energy companies will enjoy years of pricing power from an AI-driven electricity shortage. His argument deserves attention. But Bloom Energy (NYSE:BE) may be one company that doesn’t fit neatly into his bearish framework.
Chanos Says This Is a Bottleneck, Not a Shortage Chanos argues investors are confusing a temporary infrastructure problem with a permanent energy shortage.
His thesis is straightforward. The U.S. has enough generation capacity to meet demand over time, but permitting delays, transmission constraints, and turbine shortages have created temporary grid bottlenecks. If AI demand remains as large as forecasts suggest, economic incentives will force regulators and utilities to accelerate solutions.
There is evidence supporting that view. The Federal Energy Regulatory Commission recently approved measures aimed at speeding up data center grid connections. If interconnection queues begin moving faster, some of today’s scarcity premium could disappear. Investors paying 50x, 60x, or 70x earnings for energy-related stocks may discover they were pricing in conditions that don’t last forever.
That said, Chanos is talking about a world two or three years from now. In the AI era, that is practically an eternity.
Bloom Energy Benefits From Today’s Crisis Bloom Energy’s opportunity isn’t dependent on what the grid looks like in 2029. The company’s solid oxide fuel cells provide behind-the-meter power generation directly at data centers. Instead of waiting years for utility connections, operators can deploy Bloom’s Energy servers and begin generating electricity on-site.
Here’s what makes the value proposition compelling:
Bloom Energy Advantage Benefit to Data Centers 90-120 day deployment Accelerates time-to-power versus 3-5 year grid connections Instant response capability Handles AI workload spikes without large battery systems Quiet, low-emission operation Faces less community opposition than diesel generators 99.999% reliability Protects against blackouts and grid instability 30% federal tax credit eligibility Reduces project costs under Inflation Reduction Act incentives Those advantages are key because many AI projects cannot afford to wait years for electricity. BloombergNEF projects data center power demand could exceed 106 gigawatts by 2035. Whether the problem is a shortage or a bottleneck, operators still need power today.
Bloom’s solution effectively monetizes that urgency and the market has noticed. Bloom Energy stock has climbed roughly 267% year to date and more than 1,300% over the past 12 months as investors embraced the company’s role in solving data center power constraints. The company has also reported rapid growth tied to hyperscaler demand and expects record revenue in 2026.
The Risks Investors Can’t Ignore Granted, Chanos may be right about one thing: valuation. Bloom’s stock performance has dramatically outpaced the growth of its underlying business. Several analysts have warned that expectations now assume years of flawless execution. Some valuation metrics have expanded to levels rarely seen outside high-growth software companies despite Bloom operating in a capital-intensive energy industry.
Investors should also watch several key risks:
Customer concentration remains elevated. AI infrastructure spending could slow. Insider selling has increased in recent months. Future multiple compression could pressure shares even if revenue continues growing. In short, Bloom Energy may be a great business but still become an expensive stock.
Key Takeaway Chanos could ultimately be correct that today’s AI energy scarcity is temporary. If grid bottlenecks ease over the next few years, many alternative energy stocks trading at premium valuations could face a painful reset.
Bloom Energy, however, occupies a unique position. The company isn’t merely betting on future power demand. It is helping data centers solve an immediate problem by bypassing grid delays altogether.
For sharp investors, the debate isn’t whether Chanos is right or wrong. It’s whether Bloom can grow fast enough over the next several years to justify a stock that has already risen more than 1,300% in a year. Ultimately, Bloom’s business model appears stronger than the broad alt-energy sector Chanos is criticizing, but the valuation leaves little room for mistakes.
