Bloom Energy (BE +7.43%) has been one of the darlings of the artificial intelligence (AI) boom. Shares of the fuel cell maker soared as investors identified it as a potential solution to the challenge of powering all the data centers being planned and built.
Investors have soured somewhat on the AI sector, though, and Bloom Energy shares have plunged 46% from October highs. That includes a 12.6% drop as of 3:07 p.m. ET today.
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From boom to bust?
In October, Bloom announced a $5 billion deal with Brookfield Asset Management, under which the asset manager will build artificial intelligence (AI) data centers powered by Bloom's fuel cell technology. Large capital investment commitments like that are now being questioned by investors, however.
Today, investor scrutiny of AI spending has increased, with reports that private equity asset manager Blue Owl Capital may not provide financing for a $10 billion data center in Michigan, previously announced in collaboration with tech giant Oracle.
NYSE: BE
Key Data Points
Investors poured into Bloom shares, hoping that the massive AI spending would bring a windfall for the company. Bloom's valuation soared on those hopes to a market cap of over $33.5 billion. That's a rich valuation for a company that just reported record quarterly revenue of $519 million.
Now that AI spending is being questioned, investors are booking profits in Bloom Energy stock. That helps explain today's stock price plunge.
