Bloom Energy (BE) Gains Analyst Confidence Amid U.S. Grid Acceleration Push

Bloom Energy Corporation (NYSE:BE) is one of the AI Stocks Analysts are Tracking Closely. On October 27, UBS analyst Manav Gupta reiterated a Buy rating on the stock with a $115.00 price target. The firm cited policy tailwinds expected to enable faster grid approvals and fuel data center demand.

UBS pinpointed a recent Bloomberg report about U.S. Energy Secretary Wright sending a draft proposal to the Federal Energy Regulatory Commission (FERC) that would limit the regulator’s review period for data-center connections to the power grid to 60 days. This proposal, if approved, can significantly shorten a process that can currently take years.

With American Electric Power (AEP) already partnering with Bloom Energy to supply power to data centers, BE can supply fuel cells in 6 to 9 months, which is quicker than gas turbines.

If the rule pushes through, BE is going to have a surge in demand for its fuel cells, and is already securing projects.

“Bloomberg reports US Energy Secretary Wright yesterday sent a draft proposal to the Federal Energy Regulatory Commission (FERC) that would limit the regulator’s review period for data-center connections to the power grid to 60 days, expediting a process that can currently extend for years…We have already seen American Electric Power (AEP) tie up with BE to supply power to data centers. Given the longer lead time for gas turbines, one of the faster ways for utilities to secure this the supply of electricity is using BE’s nat gas powered fuel cells. If the Trump administration succeeds in shrinking the timeline of regulatory approval, that would allow data centers to come online at a faster pace. BE has the capacity to supply fuel cells in 6-9 months to the utilities to then move ahead with the project. BE is already securing a number of behind the meter orders to power data centers. This move would result in acceleration of orders for front of the meter solution with potentially more utilities announcing deals with BE similar to the one we saw with AEP.”

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.