Bloom Energy (BE +1.43%) was one of the surprise winners from the 2025 artificial intelligence (AI) boom. The company's power generation platform has been identified as a solution to meet the soaring demand for energy supply to AI data centers.
That helped the stock rocket almost 300% higher in 2025. The company announced deals with major AI infrastructure developers that could significantly increase Bloom's revenue stream. Yet even after such a monster move in the stock, the real growth ahead for the business could drive even more gains.
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Can Bloom Energy execute?
Bloom uses stacks of fuel cells to efficiently convert fuel into electricity. It can scale its system up as needed, providing on-site power and microgrid power platforms isolated from grid disruptions. That system can be ideal for data center operations.
Its solution to the growing power supply needs of AI infrastructure developers led to deals with Oracle and global alternative asset manager Brookfield Asset Management, worth billions of dollars in projects.
Bloom still needs to demonstrate that it can scale up and execute effectively for its fuel cells to become a key solution to the growing power needs.
NYSE: BE
Key Data Points
Bloom Energy is investing to build capacity
Bloom has recently announced a significant capital raise to support its efforts to expand capacity to support these partnerships. A $2.2 billion convertible senior note offering may potentially dilute existing shareholders, but it will put the company on a firmer financial footing moving forward.
Management will use some of the proceeds from the offering to swap some existing debt for cash and shares of Bloom Energy stock, thus reducing its future debt obligations. The majority of the latest capital raise will be invested directly in the business, including research and development, capital expenditures, and, perhaps most importantly, expansion of manufacturing capacity.
Monitor this investment
An investment in Bloom today isn't a guaranteed market-beater. Several things could derail its path forward. Investors should continue to watch its progress in growing fuel cell deployments into data centers. AI infrastructure companies could throttle back expansion plans. That would be out of Bloom's control, but could meaningfully impact its growth plans.
Yet successful integration into these large projects could spur even more business in the future. That, along with the company's capacity expansion plans, could result in Bloom Energy providing massive returns even after the stock's recent surge.
That, of course, would be the hope for investors, and an outcome that may come to fruition if the path forward continues as planned. Investors should monitor the progress, however, for any signs of change.
