Bloom Energy (BE) shares are up over 200% this year, and with the AI bottleneck far from solved, there’s a good chance this rally continues. I previously covered its competitor Oklo (OKLO) and the reasons that Oklo remained a solid bet on AI power infrastructure. Bloom Energy’s rise has come at the expense of its competitor, for the simple reason that what Oklo promises to solve in the future, Bloom Energy is doing right now.
This meant the short-term opportunity in AI power infrastructure moved to Bloom Energy a while back. But there’s a possibility that this opportunity continues to pay dividends well into the medium term. One reason for that is Oracle’s (ORCL) Project Jupiter, a 2.45 gigawatt deployment that will be powered entirely by Bloom’s fuel cells. This has proven that the company’s offerings can be utilized at scale, and aren’t just a ‘future promise’. Wall Street is looking at it as a proof of concept, and if this goes well, there’s no reason why the company cannot win more such contracts, powering entire data centers for large customers. The fact that Bloom can power a data center and reduce reliance on the grid using clean energy could become a major tailwind, helping carry the stock price higher. In fact, Nebius (NBIS) just signed a $2.6 billion deal with the company for exactly this reason.
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AI Inference As A Tailwind
The reason clean energy and independence from the grid are attractive for investors has a lot to do with the upcoming wave of AI inference. AI infrastructure must now be built in major metropolitan areas, closer to the customer. This also means they will be subject to more stringent environmental regulations. Boston Consulting Group has estimated that AI inference power demand is expected to grow at a CAGR of 122% through 2028. With its ability to set up microgrids through clean energy products in a short period of time, Bloom Energy should continue to capture more customers down the line, ensuring the stock rally continues.
About Bloom Energy Stock
Bloom is an electrical equipment and parts company that specializes in solid oxide fuel cell systems for on-site power generation. It provides the Bloom Energy Server to convert fuels, such as biogas, natural gas, and hydrogen, into electricity. Moreover, it offers the Bloom Electrolyzer, which is used to produce hydrogen.
Bloom Energy delivered exceptionally strong gains over the past year, with the stock surging nearly 16 times from its earlier levels. The momentum has remained strong this year as well, with the stock more than tripling on a year-to-date (YTD).
barchart.comThe stock may have exciting future prospects, but the valuation clearly shows it's not one for the value investors. It trades at a forward price-to-earnings of 216.21 times. The 2029 forward P/E of 32.5 times is more reasonable and much closer to the industrials sector average of 21.74 times. However, this demands perfect execution, offering no margin of safety to investors. A high-risk, high-reward proposition for investors. As the company wins more deals and Wall Street revises earnings expectations upward, the multiples may start looking more reasonable. In that case, buying at current levels would be a good idea, as the stock can stay overvalued as long as it keeps winning more contracts.
Bloom Energy Posts Solid Earnings
The company held its Q1 2026 earnings call on April 28, revealing $751.1 million in revenue, more than double from the same period last year. The full-year guidance now stands at $3.6 billion at the midpoint. At the end of the previous quarter, the full-year guidance was $3.2 billion. The company also reported $73.6 million in operating cash flow in the first quarter. It raised its gross margin expectations from 32% to 34%, reflecting improving efficiency as the company grows.
What Are Analysts Saying About Bloom Energy Stock
So far this month, three financial services firms, including Barclays and Clear Street, raised their price targets on the stock. As per the latest update, Clear Street increased its price target on the shares from $180 to $250 while maintaining a “Hold” rating on May 12. Earlier, on May 11, Barclays analyst Christine Cho also raised the firm’s price target on Bloom Energy from $177 to $254 and reaffirmed an “Equal Weight” rating.
According to 25 Wall Street analysts covering the stock, it has a consensus “Moderate Buy” rating. Their estimates show a mean price target of $250.27, which has already been reached. However, the highest price target of $335 still implies a 10.8% upside from the current levels.
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www.barchart.com On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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