Bloom Energy: Powering AI Infrastructure with Fuel Cells
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 08 2026
0mins
Should l Buy BE?
Source: Fool
- Surging Power Demand: Amid skyrocketing investments in AI infrastructure, power demand is exploding, and traditional grids cannot keep pace; Bloom Energy addresses this with its solid oxide fuel cell technology, meeting the urgent need for clean electricity in the market.
- Significant Technological Edge: Bloom Energy's solid oxide fuel cells generate electricity through electrochemical reactions, offering high-efficiency, low-emission baseload power for AI data centers, significantly enhancing the reliability and flexibility of power supply.
- Strong Financial Performance: Bloom Energy achieved a 37% revenue increase over the past year, reaching $2 billion, with gross margins rising by 160 basis points and operating income up 46%, indicating improving profitability in a capital-intensive industry that attracts investor interest.
- Broad Market Outlook: With a $20 billion backlog, Bloom Energy is poised to benefit from the long-term trend of AI electrification in the coming years; despite a price-to-sales ratio of 16, its technological differentiation and market potential make it an ideal long-term investment choice.
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Analyst Views on BE
Wall Street analysts forecast BE stock price to fall
19 Analyst Rating
8 Buy
9 Hold
2 Sell
Moderate Buy
Current: 210.060
Low
71.00
Averages
142.89
High
184.00
Current: 210.060
Low
71.00
Averages
142.89
High
184.00
About BE
Bloom Energy Corporation is engaged in stationary fuel cell power generation by market share. The Company provides distributed energy technology solutions to customers. The Company manufactures advanced and versatile fuel cell energy platforms, supporting the commercial availability of two products: the Bloom Energy Server for generating electricity and the Bloom Electrolyzer for producing hydrogen. With approximately 1.4 gigawatts (GW) of Energy Server systems deployed in more than 1,000 locations and nine countries. Its solid oxide fuel cell technology platform is the foundation for its Energy Server system and Bloom Electrolyzer. The Bloom Energy Server system is designed to deliver reliable, resilient, clean and affordable energy for utilities and organizations alike. Its Energy Server system is designed to deliver reliable electricity. The Bloom Electrolyzer is designed to provide hydrogen solutions based on the same solid oxide platform as its Energy Server systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Credo Acquisition Expansion: Credo's agreement to acquire DustPhotonics is expected to elevate its optical revenue to over $500 million by fiscal 2027, further solidifying its market position in AI data centers.
- Oracle Partnership Expansion: Oracle's partnership with Bloom Energy has expanded to include a 1.2 GW fuel cell contract, which is anticipated to enhance energy efficiency in its cloud data centers, while its multicloud database revenue surged by 531% in the quarter ending February 28.
- CoreWeave Major Deal Signing: CoreWeave's $21 billion agreement with Meta Platforms for AI cloud computing capacity through December 2032 has led analysts to raise their stock price forecasts, contributing to a rise in CoreWeave's stock price.
See More
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- Oil Price Decline: Oil prices fell this week as peace talks between the U.S. and Iran progressed, alleviating investor fears of a recession driven by Middle Eastern events, which shifted focus back to investable trends like artificial intelligence.
- Credo Technology Expansion: Credo Technology's agreement to acquire DustPhotonics is expected to boost its optical revenue to over $500 million by fiscal 2027, significantly enhancing its market position in AI data centers.
- Oracle Cloud Growth: Oracle's partnership with Bloom Energy for a 1.2GW fuel cell contract will power its cloud data centers, while collaboration with Amazon Web Services aims to enhance cross-cloud solutions, with multicloud database revenue soaring 531% year-over-year.
- CoreWeave Major Deals: CoreWeave's $21 billion agreement with Meta Platforms for AI cloud computing capacity and a multi-year deal with Anthropic have led analysts to raise price forecasts for its shares, contributing to a rise in stock value.
See More
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- Bond Market Stability: The slight decline in bond yields indicates a stable market outlook, which helps support the stock market, particularly amid oil price fluctuations, thereby reducing investor panic.
- Tech Stock Recovery: The so-called 'Magnificent Seven' tech companies, including Alphabet and Amazon, are beginning to reap benefits from their previous high expenditures, enhancing market confidence in their future profitability, which could drive further market gains.
- Rise of the AI Economy: The emergence of AI agents is expected to significantly reduce hiring and operational costs for enterprises, driving demand for chips like Nvidia's, which will further boost growth for related companies.
- Improved Investor Sentiment: Despite ongoing market uncertainties, the combination of low bond yields and strong performance from tech stocks fosters an optimistic outlook among investors, potentially attracting more capital into the stock market.
See More
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- Stock Surge: Bloom Energy's stock surged 29.4% this week, reaching a 52-week high of $229.55 per share, reflecting strong market recognition of its critical role in AI data centers and likely driving further market capitalization growth.
- Growing Orders: The company signed a contract with Oracle to deploy 1.2 GW of capacity, with potential expansion to 2.8 GW, significantly enhancing revenue visibility and indicating robust demand for its technology in the market.
- Expanding Customer Base: Bloom Energy has deployed solid-oxide fuel cell systems for several major global companies, solidifying its market position in providing clean and reliable power solutions as AI workloads increase pressure on power supplies.
- Optimistic Future Outlook: With a backlog of $20 billion at the end of fiscal year 2025, combined with the maturity of its technology and market demand, Bloom Energy is poised for substantial growth, although stock volatility may increase.
See More
Big Tech Stocks Set for Historic Gains
- Oracle Stock Surge: Oracle's shares are up 32% this week, on track for its best week since October 1999, driven by an expanded AI data center power deal with Bloom Energy, contracting 1.2 gigawatts of capacity, showcasing the company's strong positioning in the AI sector.
- AMD Hits All-Time High: AMD's stock has risen 13% this week, climbing over 40% during a 12-day streak, marking an all-time high and reflecting strong market confidence in its product demand, indicating a significant recovery in the semiconductor industry.
- Microsoft's Strong Rebound: Microsoft is up more than 14% this week, poised for its best week since April 2015, following its worst quarter since 2008, demonstrating optimistic market expectations for its future growth.
- Tech Sector Recovery: The iShares Expanded Tech-Software ETF is up about 15% week-to-date, on track for its best week since October 2001, reflecting a resurgence of confidence in tech stocks, particularly driven by ongoing investments and innovations in the AI space.
See More
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- AMD Hits All-Time High: AMD's 13% rise this week, with over 40% gains during a 12-day streak, marks its longest winning run in over 20 years, reflecting strong market confidence in its growth prospects.
- Microsoft's Recovery: Microsoft is up more than 14% this week, on track for its best week since April 2015, following its worst quarter since 2008, indicating market recognition of its recovery potential.
- Overall Market Performance: The iShares Expanded Tech-Software ETF has risen about 15% week-to-date, aiming for its best week since 2001, showcasing optimism in the tech sector despite a 20% decline this year.
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