During the September 30 episode of Mad Money, Jim Cramer argued that Bloom Energy Corporation (NYSE:BE) offers data center operators a way to secure electricity without relying entirely on increasingly constrained utility grids. That opportunity is also why Bloom Energy is emerging as a critical player in the AI infrastructure buildout. The bigger backdrop is an expected 33-GW AI power shortfall that could create opportunities for companies able to bring generation online quickly.
Bloom Energy Targets Data Center Power Demand
Bloom Energy Corporation’s solid oxide fuel cells convert fuels including natural gas and hydrogen into electricity and can be installed directly at customer sites. Cramer said that makes the technology especially useful as data center developers face long grid-connection timelines and local opposition to projects that could increase electricity demand.
The company reported second-quarter revenue of $1.065 billion, up 165.5% year over year, while product revenue increased 215.4%. Gross margin rose to 33.4% from 26.7%, and operating income reached $182.2 million, compared with an operating loss of $3.5 million a year earlier. It raised its 2026 revenue guidance to $3.9 billion to $4.2 billion, representing approximately 100% growth at the midpoint. Cramer highlighted the pace of that expansion:
They crushed the numbers. 166% revenue growth, delivering a 37-cent earnings beat off a 41-cent basis. Founder and CEO KR Sridhar pointed out that it took them 21 years to reach their first billion dollars in annual revenue, that was in 2022, and another three years to double it. Now, they’re aiming to double it again in a single year because demand is off the charts and they’ve gotten much faster at manufacturing these fuel cells.
The company has also secured large AI infrastructure commitments. Oracle agreed to procure up to 2.8 gigawatts of Bloom fuel-cell capacity, with 1.2 gigawatts contracted and being deployed, while Bloom said it had previously delivered a fully operational system to Oracle in 55 days. Brookfield increased its financing framework for Bloom-related AI infrastructure projects to $25 billion from $5 billion. Bloom’s rapid AI-power rally has already pushed it to No. 7 among our 12 High-Flying Stocks to Invest In—but six stocks still rank ahead of it.
Bloom Energy’s Growth Comes With Concentration Risk
The significant fundamental risk is customer concentration. Bloom Energy Corporation’s amended second-quarter 10-Q states that one customer accounted for approximately 73% of total revenue in the three months ended June 30. For the first six months of the year, two customers accounted for approximately 44% and 21% of revenue, respectively. That concentration makes quarterly revenue more dependent on the timing of large deployments and the spending plans of a small number of customers. A delay, cancellation, or reduction in orders from a major customer could therefore have a material effect on reported results.
Bloom also faces competition from other power-generation and infrastructure technologies. The company’s premium valuation adds another risk if the pace of data center deployments or Bloom’s own growth slows. Bloom Energy’s growth story looks impressive on paper. But there is another side to the valuation that investors should consider.
Bloom Trades at a Premium to Power Infrastructure Peers
Yahoo Finance data as of September 23 showed Bloom Energy Corporation trading at 57.14x forward earnings. GE Vernova traded at 38.76x forward earnings, while Vertiv traded at 27.78x. Bloom’s forward earnings multiple was nearly 50% above GE Vernova’s and more than double Vertiv’s. The businesses are not directly comparable, but the gap shows the growth premium embedded in Bloom’s stock. Cramer acknowledged the valuation risk, as he said:
Stock does trade at a nosebleed 56 times next year’s earnings estimates. It’s not cheap, but you’re going to have to pay up. The secret sauce multiple requires a triple-digit growth rate that Bloom’s given you. So I don’t think it’s all that expensive versus the growth rate. Some analysts remain cautious about the valuation. Wells Fargo… questioning whether additional turbine capacity could eventually reduce demand for Bloom’s higher-cost fuel cells. But given that these turbines are sold out for years, I’m not worried.
Hedge Fund Ownership Rises as Short Interest Remains Moderate
According to Insider Monkey tracking over 1,000 hedge funds, 116 hedge funds had stakes in BE in the second quarter, up from 91 in the first quarter. Its short interest was 6.65% to 6.88% of the float. Cramer’s overall view remains positive, but he warned against chasing the rally:
Of course, I’m not telling you to chase the stock… It’s tripled year-to-date. But the bottom line: Let me repeat what I said in February, wait for a pullback because you’re going to get one, and that pullback will be another gift for long-term investors. If you want exposure to electricity powering the AI buildout, Bloom Energy remains my favorite way to play it.
Bloom Energy Corporation’s AI infrastructure relationships and rapid expansion support Cramer’s thesis, but the stock’s valuation means investors are already pricing in sustained exceptional growth. High customer concentration adds another risk if major deployments are delayed or reduced.
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