It has been a tough year for Plug Power (PLUG +6.32%) stock. At one point, shares were down in value by nearly 20%. But in recent sessions, shares have recovered strongly. In fact, Plug Power stock outperformed the S&P 500 index by 7% last week alone.
What is behind the company's resurgence? One catalyst in particular is likely responsible. Every hydrogen stock investor will want to understand this news.
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Plug Power just reported a surprisingly strong earnings report
On March 2 -- the start of Plug Power's stock price surge -- Plug Power reported fourth-quarter earnings, as well as full-year 2025 earnings. The results were, at least on the surface, impressive. In total last year, the company:
- Surpassed $700 million in revenue, a 12.9% increase year over year
- Achieved positive gross margins in the fourth quarter -- a huge win for a company used to posting large losses
- Improved its liquidity position to pursue its 2026 growth initiatives
NASDAQ: PLUG
Key Data Points
Plug Power's management team was emphatic about how strong its 2025 results were. "This past year marked a pivotal commercial inflection point for Plug," a press release for the company stressed. Several analysts also upgraded the stock and increased their price targets.
Does all this momentum make Plug Power stock a buy? Not so fast. Many of the analysts who upgraded the stock are still bearish on the company as a long-term investment, with price targets below the current trading price. And while positive gross margins are encouraging, the company still posted a net loss of $1.7 billion last year -- more than half its current market cap.
Meanwhile, most experts believe that hydrogen fuel's economic viability is still years or perhaps even decades away. Investors looking for high-risk, high-upside stocks are likely better off looking at next-gen nuclear stocks with more near-term adoption possibilities within high growth sectors like artificial intelligence (AI).
Oklo Inc. (OKLO +9.10%), for example, is developing small modular reactor (SMR) technologies that are tailored specifically for AI data center adoption. Oklo's facilities could deliver reliable base load power for decades without refueling. Hydrogen fuel systems like what Plug Power provides, meanwhile, need regular refueling, adding significant transportation complexity and costs, plus unforeseen opportunities for blackouts.
Oklo's market cap of $9 billion is higher than Plug Power's $3 billion valuation. But if you're looking to take a big swing at huge potential upside, SMR stocks like Oklo are the clear winners. Major tech firms and data center operators have already shown great interest in this emerging technology. Plug Power has also seen some traction in this regard, but the tech industry's interest in SMR technology seems much higher than for hydrogen-based solutions.
To be clear, both Oklo and Plug Power are speculative growth stocks. But from my perspective, SMR technology seems to be garnering more interest from higher-growth sectors like AI than hydrogen. Despite Plug Power's positive streak in recent trading sessions, I'm still steering clear.
