Can Investing in Bloom Energy Stock Double Your Money?
Key Points
Bloom's growth rate skyrocketed to more than 165% in its most recent quarter.
The company has benefited from opportunities related to the build-out of data centers.
The stock is pricey, trading at more than 270 times its earnings.
Investing in Bloom Energy (NYSE: BE) can be an enticing way to indirectly invest in the ongoing data center build-out. As tech companies continue to build data centers to support their businesses and drive opportunities in artificial intelligence (AI), there's an inevitable need to supply power to those data centers.
That's where Bloom Energy comes in. Its fuel cell systems can help provide continuous power for data centers. The company's CEO even said that "Bloom is now a standard for AI onsite power."
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Given the growth potential for Bloom, is the energy stock a no-brainer buy right now that could double in value?
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Bloom's revenue has taken off this year
Opportunities related to AI have unleashed massive growth for Bloom, as is evident in the chart below, underscoring just what kind of growth beast it has been of late.
BE Revenue (Quarterly YoY Growth) data by YCharts
The company has been posting record numbers, with revenue recently topping $1 billion during a quarter for the first time. For 2026, the company projects its sales to reach $3.9 billion. Last year, its top line was up around $2 billion. If the business can continue posting these types of results, it may not be a matter of if Bloom's stock doubles but when it happens.
Investors, however, should consider the risk. A lot hinges on AI data center opportunities, which can make the stock highly vulnerable to the tech sector and overall investor sentiment. The danger is that things can change quickly in tech, and if they do, and companies pull back on data center spending and investments, that could weigh down Bloom's stock significantly.
The stock has potential, but it's also not cheap
In the past 12 months, Bloom's stock has skyrocketed more than 370%. Although it has been declining in recent weeks, investors who have been hanging on are still sitting on some incredible gains. And its valuation is inflated: the stock trades at more than 270 times its trailing earnings. While that falls to around 80 based on analysts' future earnings expectations, that kind of valuation effectively leaves no margin of safety for anyone buying the stock today.
I do believe Bloom's stock could double again, but it may not be quick, given its high valuation. At more than $60 billion in market cap, this isn't a small stock anymore. Investors who buy Bloom's stock should be prepared to hang on for multiple years and be aware of the risk of a larger decline ahead, as much of its future growth will inevitably depend on the appetite for more data centers.
David Jagielski, CPA 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.