Valued at a market cap of $20 billion, Bloom Energy (NYSE:BE) is a leader in clean, reliable on-site power generation.
The world faces a massive power crisis as AI data centers consume vast amounts of electricity immediately. Moreover, traditional power grids are unable to deliver power fast enough, and utility companies say new connections take 5-7 years in most states.
Bloom Energy solves this problem by making fuel cell systems that generate electricity right where customers need it.
BE stock provides investors with exposure to the rapid expansion of AI infrastructure. The company’s systems power data centers for Oracle, Amazon Web Services, and other tech giants. They also serve factories, hospitals, and other facilities that can’t afford power interruptions.
BE stock has risen an astonishing 720% in the last 12 months, which means the clean energy company trades at a premium. With a Ziggma score of 62, Bloom Energy stock is poised for steady growth, backed by strong financials, albeit a valuation score of 22 suggests that the stock is richly valued relative to peers.
In Q2 of 2025, Bloom Energy reported record revenue of $401 million, an increase of 20% year over year. The June quarter was also the most profitable second quarter in the company’s 24-year history.
Management has doubled down on growth as Bloom will expand factory capacity from 1 gigawatt annually to 2 gigawatts by the end of 2026. This massive investment reflects confidence in sustained demand.
Bloom Energy Stock Profile: Clean Power at AI Speed
Bloom Energy operates a unique business model centered on distributed power generation using solid oxide fuel cell technology.
Core Technology: Bloom’s Energy Servers convert natural gas or biogas directly into electricity through an electrochemical process, which translates to higher efficiency than traditional power plants or backup generators.
Each energy server produces 250 kilowatts of power, and customers can stack multiple units to reach whatever capacity they need – from hundreds of kilowatts to hundreds of megawatts.
The modular design offers enormous advantages, given that systems can be installed in weeks instead of years. They can be moved between locations, and capacity can be increased by adding more units.
This speed advantage is driving explosive demand as tech companies race to build AI infrastructure, unable to wait years for grid connections.
Service Revenue Model: In addition to selling equipment, Bloom offers long-term service agreements that generate recurring revenue for 10+ years after installation.
Service revenue has been profitable for six consecutive quarters. Q2 marked the first time service margins reached double digits, which indicates improving reliability and operational efficiency.
BE Stock: Record Financial Performance
Bloom Energy reported outstanding financial results for Q2, ending June 30, 2025.
Revenue Growth Acceleration: Total revenue reached $401 million, up 19.5% from the year-ago period. This marks the highest quarterly revenue in company history.
Product revenue drove most of the growth as Bloom shipped systems to data center customers. Service revenue grew steadily from the expanding installed base.
Margin Expansion Gross margin hit 28.2%, up from 21.8% last year, a 650 basis points of improvement in one year.
The gross margin expansion was tied to manufacturing efficiency improved through level-loading the factory while product mix shifted toward higher-margin applications.
Operating income reached $28.6 million compared to a $3.2 million loss in the year-ago period. Adjusted EBITDA hit $41.2 million, up from $10.2 million in the prior year.
EBITDA margins continue to expand as the business scales, and earnings per share turned positive at $0.10 versus a $0.06 loss last year.
Strong Balance Sheet: Bloom refinanced $113 million in convertible notes that were due in August 2025. The new notes don’t mature until 2029, providing flexibility to fund aggressive capacity expansion.
Management expects positive operating cash flow for the full year 2025 at levels similar to fiscal 2024. Capital expenditures will also match last year’s spending.
BE Stock: Environmental and Social Impact Leader
Clean Energy Generation: Bloom’s technology produces electricity with roughly 50% lower carbon emissions than coal-fired power plants. Systems using biogas or renewable natural gas can achieve near-zero emissions.
The company has generated over 40 terawatt-hours of clean electricity since beginning commercial operations. This avoided millions of tons of CO2 emissions and harmful air pollutants, making BE a top stock to own for impact investors.
Air Quality Benefits: Unlike diesel generators or gas turbines, Bloom systems produce virtually no air pollution. There’s no combustion, so no nitrogen oxides, sulfur dioxide, or particulate matter.
This makes them ideal for urban locations where air quality matters. Hospitals, data centers, and other facilities can generate power on-site without impacting their communities.
Innovation Through Impact Investing: Bloom pioneered creative financing structures that expand access to clean energy. The company partnered with HPS Investment Partners to create a $125 million fund for clean energy projects.
This innovative model lets customers adopt Bloom systems with no upfront cost. They pay over time from energy savings which removes the most significant barrier to clean energy adoption – initial capital requirements.
Data-Driven Improvement: Bloom has deployed over 22,000 Energy Servers containing more than 1 million individual fuel cell stacks. Each stack has a digital twin that feeds real-time performance data back to headquarters.
The company has collected 4.5 trillion data points from the field. AI analyzes this data to improve reliability, reduce costs, and optimize performance continuously.
The Bull Case for Bloom Energy Stock
Bloom Energy benefits from several powerful growth drivers converging simultaneously.
AI Data Center Explosion: Hyperscale cloud providers are projected to spend over $500 billion on infrastructure in 2025. At least 10% of that ($50 billion) goes to power equipment. That equals the capacity of one considerable nuclear plant needed every month.
Oracle Partnership Validation: The Oracle deal represents Bloom’s first direct contract with a major hyperscaler. Oracle chose Bloom to power AI data centers with 90-day delivery timelines.
Utility Partnerships: American Electric Power signed a 1-gigawatt framework agreement with Bloom. AEP is deploying Bloom systems for Amazon Web Services and other data center customers.
Capacity Expansion: Management will double manufacturing capacity to 2 gigawatts annually by the end of 2026. The $100 million investment reflects strong order visibility. Bloom can now meet demand that would have been impossible to serve with existing capacity.
Tax Credit Extension: The One Big Beautiful Bill Act extended investment tax credits for fuel cells through 2032. Bloom customers continue receiving 30-50% tax credits with no gap in availability.
What Next for BE Stock?
Management provided full-year 2025 guidance of $1.65-1.85 billion in revenue, an increase of 25% year over year. Its non-GAAP operating income should touch $150 million, indicating a margin of almost 8%.
Analyst forecasts show explosive long-term growth. Revenue could climb from $1.47 billion in fiscal 2024 to $4.57 billion by fiscal 2029. That equals 25% annual growth over five years.
Earnings growth could accelerate even faster with net income projected to surge from $60 million in fiscal 2024 to $500 million in fiscal 2028, an annual increase of 68%.
The company has secured major contracts across multiple customer segments. Beyond Oracle and AEP/AWS, Bloom serves:
- Quanta Computer for AI server manufacturing facilities
- Commercial and industrial customers needing reliable power
- International markets in Korea, Taiwan, Germany, Italy, and the UK
Product innovation continues to advance as combined heat and power systems capture waste heat for cooling or industrial processes, which improves efficiency by an additional 20%.
Load-following capability enables Bloom systems to match fluctuating demand in real-time, making them ideal for data centers with dramatically varying computing loads.
The modular, portable design enables temporary deployments, allowing Hyperscalers to install Bloom systems at one location and move them elsewhere as needs change.
Conclusion: Built for the AI Era
BE stock positions investors at the intersection of two massive trends – AI infrastructure build-out and clean energy transition. The company delivers precisely what the market needs right now.
Financial projections show remarkable growth potential. Revenue could triple from $1.47 billion to $4.57 billion between fiscal 2024 and 2029, and net income could increase 10x from $64 million to $687 million over the same period.
BE stock is quite expensive, trading at 190x forward earnings in October 2025, which makes it vulnerable if market sentiment turns bearish.
Bloom’s competitive advantages include proven technology, manufacturing scale, and customer relationships with industry leaders. The company has deployed more fuel cell capacity than any other company globally.
Environmental leadership is further enhanced by Bloom systems, which cut emissions by 50% compared to coal plants. They eliminate local air pollution, and the technology enables clean, reliable power without waiting for grid infrastructure.
Given the company’s growth trajectory, technological advantages, and position in critical AI infrastructure, BE stock offers compelling value for investors seeking exposure to the AI revolution while supporting clean energy adoption.