We recently compiled a list of the 15 AI News Making Waves Right Now. In this article, we are going to take a look at where Bloom Energy Corporation (NYSE:BE) stands against the other AI stocks that are making waves right now.
With Donald Trump having won the elections, it seems Elon Musk is going to be a powerful force in the administration. After all, X CEO has played an outsized role in his comeback, contributing millions to his campaign, serving as policy advisor, and even using his social media platform as a Make America Great Again (MAGA) advocacy platform.
Now that his efforts have come to fruition Max Tegmark, a leading scientist, who has previously worked with the world’s richest person says Musk’s influence could lead to tougher safety standards for artificial intelligence, as reported by The Guardian.
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Tegmark says Musk’s backing of a failed AI bill demonstrated that Musk is still worried about the repercussions of uncontrolled AI development. The SB 1047 bill in California required companies to stress-test large AI models before releasing them.
Having frequently warned that such an unrestrained development can be catastrophic for humanity, Musk was one of the 30,000 others who had signed a letter calling for a pause on the development of advanced AI technology last year.
According to Tegmark, Musk could convince Trump to introduce standards that prevent the growth of artificial general intelligence (AGI), a term used for AI systems that match or surpass human levels of intelligence.
“I do think that if Elon manages to get Trump’s ear on AI issues we’re more likely to get some form of safety standards, something that prevents AGI. He might help Trump understand that an AGI race is a suicide race.”
– Tegmark, a professor specializing in AI at the Massachusetts Institute of Technology.
Before Trump won the elections, Musk had predicted the development of artificial intelligence that would be smarter than the smartest human being by next year or by 2026.
“If you define AGI (artificial general intelligence) as smarter than the smartest human, I think it’s probably next year, within two years”.
– Elon Musk when asked about the timeline for the development of AGI.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A bird’s eye view of a power generation platform with a power plant in the background.
Bloom Energy Corporation (NYSE:BE)
Market Capitalization: $5.91 billion
Bloom Energy Corporation (NYSE:BE) designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation. The company is a key player in meeting the rising energy demands of AI data centers.
On November 15, Piper Sandler analyst Kashy Harrison upgraded Bloom Energy Corporation (NYSE:BE) to “Overweight” from Neutral and raised the price target by $10 to $20. The analyst believes that its recent power supply deal with American Electric Power may position the stock for massive gains. Bloom Energy Corporation (NYSE:BE) has recently announced an agreement with AEP to power artificial intelligence data centers, supplying up to 1 gigawatt of its products. Harrison states that the scale of the agreement implies more opportunities for growth in the future, even though the current sentiment around the same remains soft. Moreover, with the AEP order and potential momentum from other domestic customers, Harrison expects revenue to reach $1.8 billion in 2025.
“Despite BE’s insistence that it was working on 100 MW deals and extremely bullish commentary from the [Chief Commercial Officer Aman Joshi] in a Taiwanese interview, the market has been generally skeptical on BE’s ability to deliver power to large data centers given prior grand unfulfilled promises,” he wrote in a Thursday note. “The 100 MW order from AEP is inline with prior commentary; however, upside potential to 1-GW is literally 10x what we were expecting,” the analyst continued. “Given the endorsement of BE’s technology from a large utility, agreements with other large players could materialize.
Overall BE ranks 14th on our list of the AI stocks that are making waves right now. While we acknowledge the 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 timeframe. If you are looking for an AI stock that is more promising than BE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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