We came across a bullish thesis on Fluence Energy, Inc. in Oguz Erkan’s Capitalist Letters Substack. In this article we will summarize the bulls’ thesis on FLNC. Shares of Fluence Energy, Inc. were trading at $19.39 on December 1. FLNC’s Forward P/E was 93.46 according to Yahoo Finance.
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As investors pile into data center and semiconductor stocks as the “picks and shovels” of the AI boom, valuations in those sectors have soared, leaving little upside. However, another fundamental enabler of the AI revolution – energy – remains largely ignored, particularly in the nuclear and storage segments.
Bloomberg predicts that energy demand from AI data centers will quadruple in the next decade, while renewables are expected to double by 2030. Since renewable generation is intermittent, the world will need massive energy storage capacity to balance supply and demand, creating a tailwind for long-term growth for companies like Fluence Energy.
Fluence, a leading provider of utility-scale battery storage solutions, has grown rapidly since 2020, but remains undervalued at just 1.2x sales. It reached profitability last year, marking a turning point as storage demand accelerates globally. The company benefits from a strong family (Siemens and AES Energy) that provides deep manufacturing expertise, established customer relationships and a strong green energy portfolio. Major customers such as Amazon, Meta and Google already deploy Fluence batteries in their data centers.
Fluence’s initial decision to move battery manufacturing to the United States has caused short-term delays, but positions it strategically as buyers look to reduce reliance on China amid concerns about tariffs and data security. Its integrated software platform for energy monitoring and bidding further differentiates it from its competitors. With delays behind it, Fluence is prepared to capitalize on the growing global demand for storage. Based on conservative growth and margin assumptions, the company could be worth approximately four times its current valuation, offering a rare asymmetric opportunity for investors.
Previously we covered a bullish thesis about Tesla, Inc. (TSLA) by Oliver | MMMT Wealth in April 2025, which highlighted its long-term ambitions in autonomy, artificial intelligence, robotics and energy. The company’s share price has appreciated approximately 84.37% since our coverage as investor confidence returned. The thesis still stands as Tesla’s technological vision remains intact. Oguz Erkan shares a similar but more focused perspective on the AI energy ecosystem through Fluence Energy.