Key Points
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Bloom Energy’s share price went virtually nowhere for many years.
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It started taking off in 2025, fueled by surging demand from AI data centers.
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It’s still in the early stages of its growth.
- 10 stocks we like better than Bloom Energy ›
If you invested $10,000 into Bloom Energy (NYSE:BE) at its IPO in 2018, that investment would have gone virtually nowhere for the first seven years. That’s not to say it was a smooth ride. At one point, your investment would have been down to less than $2,500, while at the peak it would have been worth nearly $17,500.
However, if you had been patient and held on, that perseverance would have paid off big time over the last 18 months or so. Shares of Bloom Energy have rocketed more than 700% since mid-2025, growing that original $10,000 IPO investment into more than $110,000. Despite that recent surge, I have been buying shares of the top hydrogen stock. Here’s why I still think it’s a good buy right now.
From a promising technology to powering the AI revolution
Bloom Energy completed its IPO in June 2018 at $15 per share, raising capital to help fund its growth. The company had developed a proprietary solid oxide fuel-cell technology to convert fuel into electricity without combustion. It was a promising technology that enabled large electricity users to generate on-site power.
Demand for the company’s advanced fuel cells has steadily grown over the years. However, Bloom Energy hit an inflection point in 2025 as AI power demand took center stage. Data center developers began turning to Bloom Energy to meet their need for quick-to-deploy, resilient, and scalable power solutions.
In July 2025, Bloom Energy collaborated with Oracle to deliver on-site power to its AI data centers within 90 days. The company delivered its first fully operational fuel cell system to Oracle in just 55 days. That led the cloud giant to expand its strategic relationship to deploy up to 2.8 gigawatts of fuel cells to accelerate AI infrastructure build-out. Bloom also formed a $5 billion strategic AI infrastructure partnership with Brookfield Asset Management in late 2025. The companies expanded that partnership fivefold earlier this year to $25 billion, driven by strong, sustained demand by AI infrastructure developers for Bloom’s fast-to-deploy and reliable power solutions.
From burning through cash to raking it in
The surge in demand for Bloom Energy’s fuel cells has driven a massive improvement in its financial results. The year before Bloom Energy’s IPO, it generated $375.9 million in revenue, while posting a steep net loss of $281.3 million.
The company’s revenue steadily increased, while its losses narrowed. Last year marked a major acceleration in demand for its fuel cells, powering robust financial results. Bloom initially expected its revenue to grow 19% last year, while delivering increasing profitability and generating positive cash flow. It ended up delivering 37% revenue growth, strong profitability, and was free cash flow positive for the second straight year. The company expects that acceleration to continue this year, with revenue predicted to rocket 100% to around $4 billion at the midpoint of its guidance range.
Why I’m buying Bloom now
I completely missed the run-up in Bloom Energy. However, I have recently started building a position as the stock has come down from its peak earlier this year. It’s currently down more than 20% from the top due to concerns that AI-related spending may slow.
I think the recent sell-off was a good opportunity to start a position in a company that I believe is still in the early stages of its growth. Data center developers and other large power users are increasingly turning to Bloom Energy for their on-site power needs. According to an estimate by BloombergNEF, data centers will use one-fifth of the power generated in the U.S. by 2035, four times their current usage. Access to power is one of the biggest challenges slowing data center development these days, leading more developers to bring in their own power solutions when the grid can’t meet their needs in time. This catalyst should drive continued strong demand for Bloom’s fuel cells.
While I don’t expect to get rich, I anticipate strong returns from Bloom
I don’t anticipate Bloom Energy delivering exponential gains over the next few years. However, I do think the company can continue to grow briskly, which should drive strong long-term stock price appreciation. That’s why I’m starting to build my position in Bloom and plan to add to it if there’s a meaningful drop in the share price.
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Matt DiLallo has positions in Bloom Energy and Brookfield and has the following options: short October 2026 $150 puts on Bloom Energy. The Motley Fool has positions in and recommends Bloom Energy, Brookfield, and Oracle. The Motley Fool has a disclosure policy.
