Bloom Energy (BE +1.70%) shares fell along with much of the tech sector this week, as investors shed the artificial intelligence (AI) stocks. Bloom has been a beneficiary of the AI boom as a data center power equipment supplier.
After plunging by as much as nearly 15% mid-week, however, some investors saw an opportunity. As of Friday mid-morning, Bloom shares remained lower for the week, but only by 6.8%, according to data provided by S&P Global Market Intelligence.
Image source: Bloom Energy.
Data centers aren't dead
Bloom stock took off starting in July when the company announced a collaboration with Oracle to provide fuel cell power for planned AI data centers. News in October that the fuel cell maker would partner with Brookfield Asset Management on another $5 billion data center project venture only juiced investors' desire to own Bloom stock.
NYSE: BE
Key Data Points
Concerns of a growing bubble burst the trade this week, though. Bloom shares did get ahead of the business prospects with its monster 560% gain between July and November. But after this week's move cut the stock nearly in half, investors are back buying the dip.
Bloom still looks expensive with a market cap of over $21 billion. But the business could certainly grow into that valuation over time. Long-term investors may still have a market-beating stock as data center power needs continue to grow.
