Bloom Energy has been one of the hottest stocks on Wall Street this year. The stock is up over 800% in the last 12 months and 1,300% in the past three years.
The remarkable run has turned the fuel cell maker into one of the biggest AI infrastructure stories in the market.
Despite its outsized gains, the clean energy stock is down 30% from its all-time highs, making it a buy-the-dip opportunity, according to a leading investment bank.
Let’s see why.
The bull case for Bloom Energy stock
Bloom Energy (BE) makes solid oxide fuel cell systems that generate power on-site without requiring a connection to the local electric grid.
Its “Energy Servers” power AI data centers, which need massive, reliable electricity supplies quickly.
During the company’s first-quarter 2026 earnings call, CEO K.R. Sridhar said Bloom is becoming the “standard and go to choice for on site power” for AI data centers.
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He pointed to a new partnership with Oracle for the Project Jupiter AI data center campus in New Mexico, a deal that could reach up to 2.45 gigawatts and will rely entirely on Bloom equipment instead of gas turbines or diesel backup generators.
Sridhar also said more than half of Bloom’s current data center backlog comes from other hyperscalers, neoclouds, and colocation providers beyond Oracle.
The numbers back up that momentum.
- Bloom posted first-quarter revenue of $751.1 million, up 130.4% from a year earlier, its first-ever quarter of triple-digit percentage growth as a public company.
- The company also raised its full-year 2026 revenue guidance to $3.4 billion-$3.8 billion, up from a prior forecast of $3.1 billion-$3.3 billion.
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UBS raises its price target
- UBS raised its price target for Bloom Energy to $350 from $322 while maintaining its buy rating on the stock.
- The move followed news that Bloom and investment giant Brookfield expanded their partnership from $5 billion to $25 billion, a fivefold jump from the deal first announced in October 2025.
- UBS analyst Manav Gupta said the two companies “continue to advance a new model for AI factories that integrates power, compute, data center infrastructure, and capital from the outset.”
Source: Investing.com
The expanded funding is tied to Brookfield’s AI Infrastructure Fund, which launched in November 2025 with a goal of deploying $100 billion.
Related: JPMorgan resets Bloom Energy stock price target
“Today’s commitment reflects the momentum we are seeing in the market, as evidenced by recently announced large-scale deals,” Bloom’s Chief Commercial Officer Aman Joshi said. “Bloom is uniquely positioned to address the urgent need for clean, reliable power to support the rapid growth of AI.”
Brookfield Head of AI Infrastructure Sikander Rashid said scaling the partnership strengthens the firm’s ability to deliver “end to end solutions, from electrons to tokens” for major customers, the statement confirmed.
- Wells Fargo kept an equal weight rating on Bloom Energy.
- Oppenheimer maintained a perform rating.
- BMO Capital reiterated a market perform rating.
Source: Investing.com
Is Bloom Energy stock undervalued?
According to Tikr.com data, analysts tracking Bloom Energy stock forecast revenue to increase from $2 billion in 2025 to $14 billion in 2030.
In this period, free cash flow is projected to improve from $57 million to $4.77 billion. If Bloom Energy stock is priced at 40x forward FCF, which is reasonable given its growth estimates, it could almost triple within the next four years.
Of the 19 analysts covering Bloom Energy stock, 9 recommend “buy,” and 10 recommend “hold.” The average BE stock price target is $287, 17% above the current price of $245.
Bloom has real contracts, record revenue growth, and a fast-growing backlog of AI data center customers.
Bloom’s own research points to a bigger trend fueling the story.
The company’s mid-year Data Center Power Report found 61% of developers plan to bring their own power if the grid can’t keep up with demand, and inference now makes up more than half of all AI compute.
That suggests the need for fast, on-site power isn’t going away anytime soon, no matter what the stock does in the short term.
Related: Bloom Energy’s $25B partnership targets AI’s next bottleneck
