AI Data Center Trade Fuels Bloom Energy (BE) Rally — Is It Sustainable?

Bloom Energy Corporation (NYSE:BE) is one of the AI Stocks on Market Radar. On September 23, BofA Securities analyst Dimple Gosai raised the price target on the stock to $24.00 (from $21.00) while maintaining a Underperform rating.

According to the firm, Bloom Energy has secured remarkable wins such as those with American Electric (AEP) and Oracle (ORCL). These wins, along with other fast project deployments, has made it a standout beneficiary of the AI data center trade. The stock had a greater than 650% stock rally over the past year.

However, the firm believes that Bloom’s surge isn’t backed by fundamentals. Major wins secured by the company didn’t change the company’s guidance, and the Fremont’s 1GW facility is running at less than 50% utilization.

Moreover, supply chain checks point to revenue growth closer to the firm’s 2026 outlook which remain “well below” Street estimates for 2026-28.

Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers.

While we acknowledge the risk and potential of BE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.