Bloom Energy (BE 3.37%) continues to be the market's artificial intelligence (AI) darling stock. Shares of the designer and manufacturer of on-site fuel cells shot 56.3% higher last month, according to data provided by S&P Global Market Intelligence.
It comes at a time when technology companies and energy suppliers alike are worried about where data centers will find affordable power. Those AI factories require the same electricity capacity as millions of homes, and Bloom Energy fuel cells have emerged as one solution. Electric utilities are scrambling to add capacity, and investors piled into Bloom Energy as an alternative AI investment.
The stock has soared by more than 500% so far in 2025.
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AI power needs are only growing
Bloom provides solid oxide fuel cell technology that generates on-site power at the facility where it is needed. The company offers an alternative for an efficient, cleaner energy solution compared to traditional energy sources.
Bloom's stock began its recent ascent in July when it announced a deal to deliver power to Oracle AI data centers. That partnership opened the eyes of investors who had been buying the stocks of utilities, and even nuclear power start-ups, hoping to fill growing gaps in power supply demand.
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Key Data Points
The momentum from that deal continued in October with a major strategic AI partnership. Bloom and Brookfield Asset Management announced the launch of the first phase of a $5 billion joint AI infrastructure plan.
The leading global alternative asset manager will invest as much as $5 billion to deploy Bloom's advanced fuel cell technology. The collaboration between the two companies is set to begin with a data center site in Europe, to be announced before the end of the year. It will continue with future projects to design and deliver AI factories globally.
Bloom is growing like a tech company
Bloom's underlying business is already benefiting from growing demand for its products. It reported a fourth straight record for quarterly revenue in its latest business update. Revenue soared 57% year over year in the third quarter.
Investors are betting that the growth rate can continue. That optimism may stem from comments made by Bloom CEO K.R. Sridhar in that earnings report. Sridhar stated, "Bloom is at the center of a once-in-a-generation opportunity to redefine how power is generated and delivered." He noted "powerful tailwinds" with climbing demand for electricity driven by AI.
Investors who are piling in should still consider the risks associated with AI spending. Any slowdown in data center development could hit stocks like Bloom Energy disproportionally hard after its massive stock price surge.
