Bloom Energy Corporation (NYSE:BE) has become one of the market’s hottest AI infrastructure stocks, increasing in value by an astronomical 9 times since July 2025. However, the story is no longer simply about fuel cells. Investors are betting that the company’s technology can solve one of the biggest shortages in the AI industry: getting enough power to data centers quickly.
Bloom Energy generated a record $1.06 billion in revenue during the second quarter, up 166% year over year, while non-GAAP gross margin reached 34.3%. Management seems gung-ho as it doubled down on its outlook, raising full-year revenue guidance to $3.9 billion-$4.2 billion and non-GAAP EPS guidance to $2.55-$2.85.
DON’T MISS: Bloom Energy (BE) Unveils a New Power Play for the AI Boom
The Bull Case
Bloom’s biggest advantage may be that it is solving a problem customers cannot afford to wait on. According to a Lawrence Berkeley National Laboratory study in December 2025, grid interconnection currently takes an average of 55 months, compared with less than two years back in 2008. Bloom’s islanded microgrid systems can potentially provide power in months instead of years.
That difference can be worth a lot to an AI company. On the Q 2026 earnings call, CEO K.R. Sridhar argued that a 1 GigaWatt AI data center could generate $12 billion-$24 billion of annual revenue, meaning getting power online even a month earlier could potentially unlock $1 billion-$2 billion of revenue for the AI data center operator.
The management is also seeing signs that customers are willing to switch. Management said several customers abandoned alternative power solutions and moved to Bloom. The customer traction is becoming harder to ignore. Bloom’s backlog is now growing faster than revenue as customers move from individual projects to longer-term orders. All major U.S. hyperscalers and more than a dozen neoclouds and AI labs have also validated and approved Bloom’s technology for AI data centers.
READ ALSO: Bloom Energy (BE) Joins S&P 500: Can Its AI Rally Continue?
The Bear Case
The problem, however, is that Bloom’s stock has already priced in an enormous amount of success. Wall Street expects revenue to rise from roughly $4.09 billion in 2026 to $6.83 billion in 2027, while EPS is expected to jump from $2.70 to $4.95. The stock is trading at 57.14x forward earnings. That is lofty considering that those earnings are expected to gallop. That means simply delivering the current forecast may not be enough. Investors need to see continued upside to estimates.
There are also execution risks. Bloom is expanding its major manufacturing facility at Fremont from an annual production capacity of 1 GW to 2 GW, with additional expansion possible, but large deployments remain complicated, and project delays can affect revenue timing. Management said its contracts provide flexibility to redeploy equipment when projects are delayed, but recent headlines around Oracle’s Project Jupiter show why investors are watching this closely. Oracle invoked force majeure on the $165 billion project, sending Bloom shares lower before they rebounded.
Competition is another consideration. Bloom Energy acknowledges that turbines, engines, utilities, renewables, storage and other fuel-cell technologies compete for the same customers.
Conclusion
Bloom Energy Corporation’s investment story has clearly changed. It is no longer just a speculative fuel-cell company waiting for the energy transition to arrive. Its technology is being pulled into the AI infrastructure buildout because customers increasingly value time to power.
The numbers are starting to support the story, with explosive revenue growth, expanding margins, strong cash generation, and a rapidly growing customer base.
But at roughly 54x 2027 consensus earnings, the stock needs more than strong growth. It needs Bloom to keep beating expectations and turn today’s AI power shortage into a much larger, highly profitable business. That’s the real test for the $85 billion valuation.
Market Sentiment
Market sentiment toward Bloom appears to be strengthening. The number of hedge funds holding the stock in Insider Monkey’s database increased from 91 at the end of Q1 to 116 at the end of Q2 2026. Meanwhile, the total value of their positions more than doubled from $4.5 billion to $10.8 billion.
READ NEXT: Broadcom’s AI Forecast Suggests Hyperscalers Want More Than Just Nvidia GPUs OR Qualcomm’s Datacenter Pivot Is Real, but The Market Already Knows This
This article is originally published at Insider Monkey.
