Shares of Plug Power (PLUG 0.45%) kicked off 2026 on a high note, surging 14.5% as of 2 p.m. ET Friday.
Thematic momentum dominated the markets on the first trading day of the new year, with clean energy stocks surging across the board as investors anticipate a surge in global power demand in 2026 and beyond amid reshoring and rapid data center expansion.
Plug Power, however, also won an analyst upgrade, fueling a fresh wave of optimism among investors as the new year begins.
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What's fueling Plug Power stock's rally?
Analyst Tim Moore from Clear Street upgraded Plug Power's stock rating from hold to buy, signaling renewed bullishness about the hydrogen fuel cell maker's prospects. Moore also assigned a price target of $3 per share to the hydrogen stock. Although lower than the analyst's previous target of $3.50 per share, the new price target still represents 50% upside from Plug Power's Dec. 31, 2025, closing price.
NASDAQ: PLUG
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With shares of Plug Power retreating sharply after crossing $4 in mid-October, Moore believes the stock is now more compelling, with strong potential upside as the company moves toward profitability. Plug Power's Project Quantum Leap program, targeting annual cost savings of $150 million to $200 million, is one of the things that has caught Moore's attention.
Is Plug Power stock a buy for 2026?
Moore might be bullish about Plug Power, but I'm not so. Plug Power is still far from profitability despite being in the business for decades. Cost savings are important, but Plug Power's pivot to green hydrogen production was supposed to be the key to profitability.
That plan has stalled though, as Plug Power had to recently suspend a major expansion program after the Trump administration paused the previous government's funding programs. Plug Power was betting on a $1.66 billion loan to drive growth, but its plans have hit a political roadblock.
