Bloom Energy (BE +2.00%) stock is off to a strong start in 2026.
The clean energy stock has already popped 62% year to date, with a monstrous gain of over 600% since last February.
NYSE: BE
Key Data Points
The company's solid oxide fuel cells have quickly emerged as the likeliest solution to the enormous demand for clean, continuous power by artificial intelligence (AI) data centers. The advantage here can't be overstated: Unlike the choir of energy start-ups -- like Oklo (OKLO 4.67%) -- that have yet to scale their energy products commercially, Bloom has a growing body of companies using its product for power generation.
That alone makes this stock worthy of the strong performance behind it. But is it a buy right now, or has the good news already been baked into today's price?
Solid oxide, solid moat?
Bloom Energy makes money primarily by selling and installing "Bloom Boxes," aka solid oxide fuel cells. These boxes generate electricity through an electrochemical process without combustion, making them cleaner than fossil fuels.
Image source: Bloom Energy.
Bloom's fuel cell systems are modular and built to scale. They can run continuously as primary on-site power or serve as a backup. The systems are fuel flexible -- they run on natural gas but can be modified to operate on biogas or hydrogen -- and they're generally more efficient at generating electricity than combustion-based generators.
Even before data centers started buying into fuel cells, Bloom was quickly becoming the name for on-site power generation. Its customer list is long and includes blue chip companies such as AT&T, Walmart, Verizon Communications, and Target. Certainly it says something about your product when your marquee clients are also some of the market's biggest names in retail and technology.
To be sure, the biggest growth factor for Bloom right now is data centers. Already it's been making headway into that market. It has deployed servers to Oracle and Equinix. It also inked a $5 billion deal with Brookfield to deploy up to 1 gigawatt (GW) of Bloom fuel cells for data centers and "AI factories."
All of this has translated into steady revenue growth. The company recently reported full-year revenue of about $2 billion for 2025, an increase of 37% from the year before. It also generated positive cash flow for the second year in a row. Revenue growth is expected to climb from here.
Data by YCharts
All this makes Bloom sound like an obvious buy. But it's important not to get too carried away. Fuel cells aren't software. They cost a good deal to install and maintain. Indeed, the capital intensity shows up in the numbers. Its fourth-quarter revenue in 2025 was roughly $778 million, while net income barely peaked at over $1 million.
Its clientele list (both current and potential customers) could also take a hit if a novel energy comes to the market that's cheaper and more efficient. Take Oklo for instance. It doesn't want to sell reactors to customers, but the electricity from reactors. That could make the lifelong use of a reactor cheaper than buying a Bloom server outright.
For now, though, Bloom is positioned to grow immensely in the AI boom. Just don't expect the stock's performance to be a straight line: It'll likely get volatile as it continues to expand. For investors who believe in a future of AI, Bloom could expose you to the energy side of it.
