Bloom Energy (BE): AI’s Power Crunch Is Fueling Explosive Growth
The AI infrastructure boom is creating enormous demand for chips, servers and data centers. But none of that equipment works without electricity, and access to enough power is becoming one of the biggest constraints on how quickly new AI capacity can come online.
That’s where Bloom Energy (BE) has carved out an increasingly valuable position.
Bloom’s solid oxide fuel cells provide on-site electricity generation for data centers, allowing operators to address some of the power constraints associated with the rapid AI build-out. The technology has already been validated and approved by all of the major U.S. hyperscalers, along with more than a dozen U.S. neoclouds, AI labs and colocation data center operators.
That demand is translating into exceptional growth. Bloom’s second-quarter revenue jumped 165.5% year over year, with product revenue more than tripling. Revenue also increased 42% sequentially to $1.065 billion.
Those results have given management enough confidence to raise its outlook twice this year. After initially forecasting roughly 60% revenue growth for 2026 at the midpoint, Bloom raised that figure to 80% following the first quarter. After Q2, management raised guidance again and now expects full-year revenue of $3.9 billion to $4.2 billion, implying that sales will more than double from last year.
We think the larger AI spending cycle gives Bloom a good chance to sustain strong growth beyond 2026. Tech companies are increasingly committing to AI infrastructure years in advance. Samsung, for example, has already locked in sales contracts for 70% of the memory chips it expects to produce through 2031, while Broadcom has provided strong guidance for fiscal 2027 and 2028 even though it is only halfway through fiscal 2026.
Every new server packed with those chips eventually needs power. As more AI infrastructure gets built, Bloom has an opportunity to capture a growing share of the spending required to keep those data centers running.
There’s also a more immediate catalyst. Bloom Energy is scheduled to join the S&P 500 on Sept. 21, bringing the company greater visibility and putting the shares into funds that track the index.
The stock trades around $269 per share and has already tripled in 2026, so this isn’t a case of buying an overlooked stock before anyone notices it. The opportunity depends on Bloom continuing to execute as AI power demand grows.
So far, the numbers give us reason to believe it can. Revenue surged 165.5% in Q2, management has raised guidance in consecutive quarters, and Bloom’s technology has already won approval from some of the biggest AI infrastructure customers in the country.
With its S&P 500 inclusion coming on Sept. 21 and the AI data center build-out creating enormous new demand for electricity, we think Bloom Energy has more room to run.
