Bloom Energy (BE 1.63%) stock has surged by 602% since the beginning of 2025. The solid oxide fuel cell provider has emerged as a key energy supplier that can meet the growing demand for power from hyperscalers as their data center footprints expand.
The company continues to see robust demand from major technology companies, and its backlog has exploded. For current or prospective investors, the question is whether Bloom Energy stock is a buy-and-hold or if it's time to sell and take some profits off the table. Let's dig deeper into the company to find out.
NYSE: BE
Key Data Points
Reasons to buy or hold Bloom Energy
Bloom Energy has seen demand for its solid oxide fuel cells explode, as the company becomes a go-to power source for AI data centers. The company had struggled for years to see its business take off, but has recently been viewed as a critical energy infrastructure provider that can help facilitate the AI boom.
What makes Bloom's solid oxide fuel cells compelling is that they can offer power solutions to data centers in just a few months. For example, last year it delivered a fuel cell solution for an Oracle AI factory in just 55 days. This speed of delivery helps companies bypass the multiyear grid interconnection and power infrastructure build-out.
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The company entered a financing framework with Brookfield Asset Management worth up to $5 billion over five years to help power its data center projects. Last year, the company's project backlog grew 2.5x year over year to $6 billion, and its total backlog reached $20 billion. The company raised its 2026 revenue guidance to $3.1 billion to $3.3 billion, well ahead of Wall Street's $2.58 billion estimate, indicating strong growth is expected to continue.
Reasons to sell Bloom Energy
With that said, Bloom Energy stock has run up significantly and currently trades around $157 per share, and analysts have expressed concern that the price already reflects forward growth expectations over the next several years. Analysts at Bank of America argue that the Brookfield deal is still in the early stages, and that the current valuation "leaves limited upside potential."
There is also some execution and scaling risk in meeting this massive backlog of deals. For example, Bloom aims to double its manufacturing capacity from 1 GW to 2 GW by the end of 2026. Manufacturing its solid oxide fuel cells is capital-intensive, and this rapid expansion carries execution risk, including potential cost overruns and supply chain disruptions.
Bloom Energy stock reflects lofty growth expectations
Analysts covering the stock project strong growth ahead for Bloom Energy, projecting that the company could grow its generally accepted accounting principles (GAAP) earnings per share (EPS) to $0.96 in 2026, and $2.50 in 2027, and $4.31 by 2028. With that said, investors are paying up for this future growth projection at nearly 63 times its 2027 projected EPS.
The company has strong growth expectations, and further deals could give Bloom Energy a bigger boost. But investors must weigh this against its lofty valuation and the execution risk of scaling up. While I remain bullish on the growth stock, Bloom Energy has been an excellent performer for investors over the past year and a half, and it would be reasonable to sell some shares and take some profits at this point.
