Bloom Energy Stock Analysis

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Bloom Energy Stock Analysis

Bloom Energy Gained 497% In Last Year

The capital spending by hyperscales is at record highs, and this also means high power demand from data centers. This has created the ideal opportunity for Bloom Energy, and that's a key reason why the stock is up by 497%.

Bloom Energy acts as a bridge and helps the data centers to meet their energy needs. They have also made deals with utility providers and hyperscalers for their special solid oxide fuel cells.

Bloom Energy Stock Is A Buy

Everyone is talking about AI, and this momentum is not going away anytime soon. The big names like Meta Platforms, Alphabet, and Amazon have reiterated their commitment to spend big on AI infrastructure.

This growth is just not possible without a lot of power. That's why the US power grid is expected to face a 10 GW power deficiency in the next 5 years.

The solid oxide fuel cells made by Bloom Energy are an ideal solution for this problem as they can be used to provide backup power. Also, the performance of the cells made by Bloom Energy is really good, which is why a lot of companies are now using them.

In Q4, the backlog of Bloom Energy increased by 2.5 times and reached $6 billion. And if we look at the total backlog, it is now sitting at $20 billion.

Normally, it takes time to scale up the power grid, but the solid oxide cells of Bloom Energy can be used right away. For example, they delivered the product to Oracle in only 55 days and even shattered their own 90-day promise.

Given the solid demand, the company has also revised its revenue guidance to around $3.3 billion for 2026. Also, analysts think that the EPS of Bloom Energy stock will be $2.92 in 2027 and around $4.58 next year.

It is clear that the AI revolution will simply cease to exist if there is not enough power. The one stock that can stand to gain the most from this power shortage is Bloom Energy stock.

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