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I'm Calling It: Bloom Energy Will Be the Biggest Winner of the AI Power Crunch for 1 Reason
Key Points
Shares of Bloom Energy have risen more than 150% this year.
The company's speed to power is a true competitive advantage.
Bloom's second-quarter revenue reached $1 billion for the first time.
While many will tell you the biggest bottleneck in AI is the chip supply, I actually believe it's electricity. Because of this, Bloom Energy (NYSE: BE) will be the biggest winner of the AI power crunch for one reason in particular: The company's speed to power is top-notch.
AI hyperscalers and their data centers cannot wait years for utility hookups. Bloom's solid oxide fuel cells help businesses avoid this wait. The company's systems can bring a data center online in about three months and don't require grid connectivity. This is a massive advantage, and customers are coming on board at record scale.
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The demand behind Bloom is quickly converting to revenue, as the company crossed $1 billion in the second quarter, a 166% year-over-year increase. Bloom's balance sheet is improving rapidly, with the company boasting about $2.7 billion in cash.
Management raised its full-year guidance to reflect a substantial increase in revenue, with a range of $3.9 billion to $4.2 billion. That's just about double what the company did in 2025.
Image source: The Motley Fool.
All this momentum means the stock isn't cheap. Shares have skyrocketed more than 150% year to date. The stock is trading at a whopping 357 times trailing earnings. For long-term investors, the premium is justified by the ever-improving balance sheet and incessant demand for fast power. We're still early on in the AI and data center days. Bloom's systems will be needed for years to come.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.