Shares of Bloom Energy (BE -0.04%) shot to all-time highs of $68.74 this week, surging 17.4% at their highest point in trading in five days, according to data provided by S&P Global Market Intelligence.
A massive analyst upgrade amid evidence that Bloom Energy is witnessing higher demand for its hydrogen fuel cells sent the stock skyrocketing.
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Bloom energy stock goes boom
On Sept. 11, RBC Capital analyst Christopher Dendrinos more than doubled Bloom Energy stock's price target from $35 per share to $75 per share, noting promising demand and growth opportunities for the company.
In another piece of news, Bloom Energy placed an order worth nearly $44 million this week with India-based MTAR Technologies, a company specializing in precision engineering and components for sectors like nuclear energy, defense, aerospace, and clean energy.
Demand is so strong that Bloom Energy plans to double capacity to 2 gigawatts by the end of 2026 and expects to generate $1.65 billion to $1.85 billion in revenue in 2025 versus around $1.5 billion last year. Some weeks ago, it posted record revenue and profits for its second quarter. Importantly, its gross margin jumped from 20.4% to 26.7% and operating loss narrowed significantly from $23.1 million to only $3.5 million during the quarter.
What's next for Bloom Energy stock?
Investor sentiment got a huge lift this week for yet another reason: tech giant Oracle's (ORCL -5.05%) bumper guidance that calls for its cloud infrastructure revenue to grow a whopping 14 times to $144 billion by fiscal 2030. Just this past July, Bloom Energy signed a deal to deliver on-site power to one of Oracle's data centers within 90 days. Investors believe Oracle's growth could mean much bigger opportunities for Bloom Energy.
Shares of Bloom Energy have already rallied 200% so far in 2025 and a jaw-dropping 525% in just one year. It's hard to wrap one's mind around such meteoric stock performances, and as compelling as Bloom Energy's future may appear, investors may want to be cautious at this point.
