Shares of Bloom Energy (BE +0.28%) soared 248% in the first half of 2026, hitting a 52-week high of $351.28 on June 25 as the fuel cell maker rode a wave of artificial intelligence (AI) data center demand for on-site power, landed marquee deals with hyperscalers, and delivered blowout numbers.
Then the cracks started, and Bloom Energy stock plunged 32% in July according to data provided by S&P Global Market Intelligence. Shares are now trading 40% off their 52-week high. Is this an opportunity to buy?
Image source: Getty Images.
Why Bloom Energy stock crashed
The main catalyst for the slide arrived on July 8 when short-seller Hunterbrook Media published a scathing investigative report titled "Bloom's Big Lie", accusing the company of relying on China for scandium contrary to the CEO KR Sridhar's claims. Scandium is a rare-earth element (RRE) critical for fuel cells, and Bloom Energy management has repeatedly told investors over the last year or so that the company has no dependency on China for the RRE.
Hunterbrook's report challenged those statements head-on, claiming that Chinese corporate filings, global trade data, satellite imagery, and its own conversations with suppliers in China prove the company sources scandium from the nation.
The report claimed that one of the leading global scandium oxide suppliers, Hunan Oriental Scandium, had told Hunterbrook that it is the largest scandium supplier for Bloom Energy.
Shares slid after the report became public, and the damage compounded after some securities law firms filed class action suits alleging the company misled investors about its supply chain.
NYSE: BE
Key Data Points
Bloom Energy rejected Hunterbrook's claims as false and misleading, reiterating that it is not dependent on China for scandium and had "clear visibility" into its supply sources that could support 25 gigawatts of fuel cells every year.
Yet, a stock trading at a 140 forward P/E doesn't have room for that kind of credibility hit.
Time to buy Bloom Energy stock on the dip?
Bloom Energy stock clawed back some ground by the end of July after the company reported second-quarter earnings.
The numbers were genuinely strong, with revenue surging 166% year over year and surpassing $1 billion for the first time ever, crushing analysts' estimates. Management raised full-year revenue guidance to $3.9 billion to $4.2 billion, implying 100% growth at the midpoint.
Its gross margin expanded to 33.4%, and GAAP earnings per share flipped to $0.62, compared with a net loss of $0.18 per share in the year-ago quarter. It's definitive proof of concept that Bloom can scale its fuel-cell business profitably.
There's no denying that AI data centers require an unimaginable amount of power, and waiting years in traditional utility grid queues just isn't an option for tech giants and data center operators. Bloom Energy's solid-oxide fuel cell systems bypass those bottlenecks by delivering rapid, clean, on-site electricity directly where it's needed.
While short-seller turbulence and supply chain questions led to July chaos, the underlying business is rock-solid, tapping directly into one of the decade's biggest infrastructure trends. It's one AI stock to buy and hold for the long term.
