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Bloom Energy is manufacturing solid oxide fuel cells.
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These fuel cells are a good potential fit for AI technology and data centers, which is one of the reasons the stock is up more than 1,000% for the year.
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10 stocks we like better than Bloom Energy ›
If I had to pick a single energy stock to buy today, I’d pick one that can do three things. First, you need to supply clean energy. Second, you need to do it in such a way that the power source is quick and easy to assemble. And third, it must provide 24/7 power for data centers and artificial intelligence.
If you read that and think, “he must be thinking about nuclear power,” then you’d be wrong. Although advanced nuclear reactors fit that description, the energy stock I’m thinking of is developing novel technology that could become a staple energy source in the future.
In fact, the action I’m thinking of is flowering energy (NYSE: BE).
In the midst of the fight for clean energy, Bloom has one of the most advanced and distinctive technologies to offer.
In short, you are doing a fuel cell System for energy generation on site. Its flagship product, the Bloom Energy Server, can convert different forms of fuel (such as natural gas or hydrogen) into electricity.
Not only is it an extremely ingenious concept, but it is also an agile technology. Fuel cells can be assembled quickly and also connected together to generate greater amounts of energy.
Fuel cells are rapidly emerging as a viable source of artificial intelligence and data center power. it’s a reason Brookfield Asset Management announced an investment of up to $5 billion to help deploy Bloom’s fuel cells for AI infrastructure.
Of course, a company with so much potential is no longer a secret. The stock is already up more than 1,000% since last year, giving it a sky-high market valuation of $27 billion. At current levels, Bloom trades at more than 100 times forward earnings, leaving little room for error.
Even with such a rich valuation, I wouldn’t ignore Bloom’s stock. As perhaps the most developed of the fuel cell companies, it has enormous potential to power a world that is increasingly in need of energy.
Before you buy Bloom Energy stock, consider this:
He Varied and Dumb Stock Advisor The analyst team has just identified what they believe are the 10 best stocks for investors to buy now… and Bloom Energy was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.