4. Bloom Energy (NYSE:BE)
Stock Performance Since Trade Date: +113%
Bloom Energy (NYSE:BE) is a fuel cell manufacturer that sells solid oxide fuel cell systems to data centers and artificial intelligence infrastructure providers. It makes mini-power plants that sit next to facilities and generate electricity on-site without connection to the traditional power grid. Its moat is built on manufacturing expertise and precision assembly developed over 25 years. The three-layer fuel cell design uses externally supplied components that make up 55 percent of the cost of goods sold. Its competitive advantage is its precision application of coatings and treatments through a heating process that achieves mass production with minimal errors and proven longevity in the field. This manufacturing knowledge cannot be easily replicated, purchased, patented, or reverse-engineered from a finished product.
Bloom Energy’s (NYSE:BE) fuel cell technology is more efficient than traditional combustion turbines. The solid oxide fuel cell achieves 65 percent electrical efficiency compared with 35 percent for combustion turbines. This means less fuel is wasted and more electricity is generated from the same amount of natural gas, biogas, or hydrogen.
A major deal to focus on is the $2.6 billion ten-year agreement with Nebius announced in May 2026 to deliver fuel cells totaling 328 megawatts of installed capacity. Nebius will use these fuel cells to power its data centers and artificial intelligence computing infrastructure without waiting years for connection to the traditional power grid. The deal provides recurring monthly revenue of approximately $260 million per year, or $65 million per quarter, giving Bloom Energy stable, predictable cash flow over a decade.
Polen 5Perspectives Small Growth Strategy stated the following regarding Bloom Energy Corporation (NYSE:BE) in its Q1 2026 investor letter:
“Bloom Energy Corporation (NYSE:BE) is a provider of solid oxide fuel cells that play a critical role in delivering clean, reliable, “always on” power at scale. AI data centers require an enormous amount of power and one of the key challenges to date has been the inability of power grids to supply the necessary electricity to meet the constant and growing demands from AI workloads. Bloom’s “Energy Server” fuel cells help address this issue, generating cost-efficient, reliable power onsite, converting fuels like natural gas, biogas and hydrogen into electricity without combustion. With the high demand for always on, decentralized power solutions, Bloom stands to potentially benefit from both capacity expansions and new project wins tied to hyperscaler and industrial customers.”
