Latest filings of Nancy Pelosi show the politician’s spouse piled into Intel Corporation (NASDAQ:INTC) and Bloom Energy Corporation (NYSE:BE). In July, he bought 10,000 shares and 100 call options, each disclosed in the $1 million to $5 million range. A few days later, he bought another 5,000 shares and 100 more call options, each in the $500,001 to $1 million range. These trades were disclosed in August.
Pelosi’s spouse also bought Intel Corporation (NASDAQ:INTC) in July, picking up 10,000 shares in the $500,001 to $1 million range plus 50 call options.
Insider Monkey’s proprietary database shows that 25 billionaires had stakes in Bloom Energy Corporation (NYSE:BE) as of the end of the second quarter, up from 22 billionaires in the quarter prior.
Intel saw a sharp increase in interest from smart money, as 40 billionaire-led funds ended the second quarter with the chipmaker’s stock in their portfolios, up from 32 billionaires a quarter prior.
In this article, we will analyze Bloom Energy in detail.
Notable billionaires increasing their stake in the company include Israel Englander of Millennium Management, who, in the second quarter, raised his position 552% to 2.52 million shares worth $763.5 million. Steve Cohen’s Point72 Asset Management went further, boosting its stake 581% to 308,856 shares. Michael Gelband’s ExodusPoint Capital lifted its position 3,133%, and Alan Howard’s Brevan Howard added 922%. Cliff Asness raised AQR Capital Management’s holding by 170%, and Dmitry Balyasny doubled his position at Balyasny Asset Management. Louis Bacon’s Moore Global Investments added 162%, and Jim Simons’ Renaissance Technologies raised its stake 27% to 675,700 shares.
Bloom Energy Corporation (NYSE:BE) makes solid oxide fuel cells that generate electricity on site. Data center operators buy them because connecting to the grid takes a lot of time.
The Bull Case
Bloom Q2 revenue rose about 165% year over year. Management has raised full-year guidance twice. Oracle is a major customer of Bloom. In April, Bloom announced that Oracle had contracted an initial 1.2 gigawatts of fuel cell capacity, under a master agreement that supports up to 2.8 gigawatts in total.
Nebius contracted about 328 megawatts of capacity, which could bring Bloom as much as $2.6 billion in payments over ten years.
Catalysts to Watch
Political pushback against data centers is turning into a tailwind for Bloom. Voters and regulators are asking why households should pay higher bills for grid upgrades that data centers need, and why local communities should absorb the extra emissions. Bloom benefits because its fuel cells let a data center make its own power on site. The company pays for its own generation, so households do not fund grid upgrades and the local grid does not get strained.
The Bear Case: Customer Concentration
One customer accounted for about 73% of second quarter revenue. Three customers represented about 87% of accounts receivable at the end of the quarter. A few projects now decide whether Bloom reports spectacular growth or something ordinary.
The Financing Chain and Valuation
Bloom is highly exposed to the AI capex boom. The company gets paid by its customers’ funding, which is coming from AI hype. Companies like Oracle, CoreWeave and Nebius are borrowing heavily and issuing stock to pay for data centers and the power that runs them. Any slowdown in the overall market can impact Bloom.
The stock trades at 77 times forward earnings, compared to a sector median of 20.56. On a trailing basis, it sits at 115.81 times. GAAP multiples run higher still, with trailing GAAP earnings at 237.54 times against a sector median of 26.08, and forward GAAP at 102.57 times against 23.14.
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