If I were to pin down just one energy stock to buy today, I would pick one that can do three things. One, it needs to supply clean energy. Two, it needs to do it in such a way that the energy source is fast and easy to assemble. And, three, it needs to provide 24/7 power for artificial intelligence and data centers.
If you read that and thought, "he must be thinking of nuclear power," then you'd be wrong. Although advanced nuclear reactors fit that description, the energy stock I'm thinking of is developing a novel technology that could become a staple energy source in the future.
Indeed, the stock I'm thinking of is Bloom Energy (BE +5.72%).
A bet on reliable power in an unreliable grid
Amid the scramble for clean energy, Bloom has one of the most advanced, and distinct, technologies to offer.
In a nutshell, it's making a fuel cell system for on-site power generation. Its flagship product, the Bloom Energy Server, can convert different forms of fuel (like natural gas or hydrogen) into electricity.
Not only is this an extremely neat concept, but it's also a nimble technology. Fuel cells can be assembled quickly, as well as connected together to generate greater amounts of power.
Fuel cells are quickly emerging as a viable source for AI and data center power. It's one reason Brookfield Asset Management announced an investment of up to $5 billion to help deploy Bloom's fuel cells for AI infrastructure.
NYSE: BE
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Of course, a company with this much potential is hardly a secret anymore. The stock has already surged over 1,000% since last year, giving it a sky-high $27 billion market valuation. At today's levels, Bloom trades at more than 100 times forward earnings, leaving little room for error.
Even with a valuation that rich, I wouldn't ignore Bloom stock. As perhaps the most developed of fuel cell companies, it has massive potential to power a world that's becoming increasingly starved for power.
