After last quarter's year-over-year revenue growth of 165.5% paired with the 12% (at the midpoint) increase in its already-impressive full-year revenue guidance, it's difficult to believe Bloom Energy (BE +9.20%) could dish out another pleasant surprise.
Except maybe it isn't. Despite economic headwinds like lingering inflation and weak consumer confidence, capital investments in artificial intelligence (AI) infrastructure are still being made in earnest.
Image source: Getty Images.
Bloom Energy manufactures electricity-generating fuel cells, by the way. Although the technology wasn't initially envisioned as a primary power source for AI data centers, as it's improved while data centers have become increasingly starved for electricity, it's become a viable option. Bloom Energy's solid-oxide fuel cells are particularly marketable in that -- unlike most other fuel cells -- they can use readily available natural gas to generate power.
The market is clearly embracing the solution, too, as evidenced by Q2's explosive revenue growth to just over $1.0 billion, versus Q1's top line of $751 million. That's why the company understandably expects to report total revenue of between $3.9 billion and $4.2 billion this year, up from April's guidance of a range between $3.4 billion and $3.8 billion.
NYSE: BE
Key Data Points
This upward-revised guidance may still ultimately be too conservative, though. As noted, demand for AI data center-capable power equipment -- all of it -- remains insatiable. Just last month, Bloom expanded its supply agreement with AI server manufacturer MiTAC Computing Technology. That follows April's announcement that its similar (but larger) partnership with Oracle is also being expanded, from 1.2 gigawatts to 2.8 gigawatts.
Connect the dots. Bloom Energy had already proven itself to be a capable power solutions provider. Now that it has, industries are looking for more of it simply because they're desperate, and Bloom can offer a workable solution right now. Don't be surprised to see more of the same kind of dealmaking before the end of the year.
