Valued at a market capitalization of roughly $86 billion, Bloom Energy (BE) stock has returned more than 1,500% for shareholders in the past 12 months. Today, Bloom Energy is not just a clean energy story but a key player in the AI megatrend. Accordingly, I believe BE stock deserves serious attention from investors who want exposure to AI infrastructure without paying Nvidia (NVDA)-level premiums.
Here is the bottom line up front: Bloom is signing massive deals, growing revenue at triple-digit rates, and raising guidance in a market starved for fast and clean power. The case to buy shares is strong — and it is getting stronger by the quarter.
Bloom Energy's AI Power Deals Are Changing the Growth Story
Oracle (ORCL) recently announced that Bloom will be the sole power provider for Project Jupiter, a multi-gigawatt artificial intelligence factory being built in New Mexico. According to the company, the project will deploy up to 2.45 gigawatts of Bloom Energy Servers, entirely replacing gas turbines and diesel backup generators.
Bloom also recently announced a deal with Nebius (NBIS), the AI cloud company, to deploy 328 megawatts of fuel cell capacity in 2026. Nebius cited similar reasons to Oracle for the move: fast time to power, virtually zero pollutants, and the ability to handle demanding AI workloads without waiting years for grid connections.
According to reports, the Nebius deal itself could be worth as much as $2.6 billion in total monthly services fees.
Why AI Companies Are Choosing Bloom
Power is the single-biggest bottleneck slowing down the AI arms race right now. Building a new data center means nothing if you cannot energize it. Grid connections can take years, and gas turbines face permitting battles over air quality and water use.
Bloom sidesteps all of that. Its fuel cells can generate electricity without combustion, which means they do not emit nitrogen oxides. These cells also benefit from minimal water use and a fraction of the permitting friction that combustion-based systems face.
Chief Commercial Officer Aman Joshi put it plainly in a company statement: "AI workloads demand power infrastructure that matches the performance of the cloud platforms they run on."
Bloom Energy's modular systems can also be moved from one site to another if a construction project gets delayed. That gives customers flexibility that traditional power plants cannot offer.
A Solid Q1 Performance
In the first quarter of 2026, Bloom Energy reported revenue of $751.1 million, an increase of 130% year-over-year (YOY). It was the first time the company posted top-line growth of more than 100% as a public limited entity.
Gross margins expanded by 280 basis points to 31.5%, while operating income rose to $129.7 million, up from $13.2 million last year. Bloom reported adjusted EBITDA of $143 million, up from $25.2 million in the year-ago period.
Management also raised full-year 2026 revenue guidance to a range of $3.4 billion to $3.8 billion. At the midpoint, that represents about 80% YOY growth. Gross margin guidance increased to approximately 34%, and non-GAAP EPS guidance now sits at $2.05 at the midpoint.
Is BE Stock Undervalued?
Out of the 25 analysts covering BE stock, nine recommend a “Strong Buy” rating, two recommend a “Moderate Buy,” 13 recommend a “Hold,” and one recommends a “Strong Sell” rating. The average Bloom Energy stock price target is $250.27, which suggests downside from current levels near $302 per share.
Bloom has spent more than two decades building toward this moment. With Oracle locked in, Nebius signed, and a pipeline that founder and CEO K.R. Sridhar has described as "diverse and robust," the demand side of this story has rarely looked better.
The company ended Q1 with $2.5 billion in cash and posted positive Q1 operating cash flow for the first time in its history. For investors looking to play the AI infrastructure buildout beyond the usual chip stocks, Bloom Energy stands out as a compelling buy right now.
On the date of publication, Aditya Raghunath 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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