Bull of the Day: Bloom Energy (BE)

Bloom Energy (BE) is the sole provider of Solid Oxide Fuel Cells (SOFCs) to datacenters in this historic AI infrastructure buildout that traditional behind-the-meter power grids cannot support.

Even as gas turbine generators from GE Vernova (GEV) and Caterpillar (CAT) work to fill the gaps, they have quickly become sold-out through 2028.

That leaves Bloom in the sweet spot of the demand curve not just for datacenters, but also manufacturing, oil & gas, large utilities, healthcare, telecom, education, retail and other commercial and industrial sectors.

Fast, Clean, Reliable, Scalable

Bloom proprietary solid oxide technology converts fuel -- natural gas, biogas, or hydrogen -- into electricity without combustion, resulting in low or no CO2 emission, and zero water demands.

Generating about 300kW of power each, combined in multiple modules the Energy Servers can create a reliable always-on micro-grid.

I've written about Bloom extensively since we bought shares for my TAZR Trader portfolio in September near $70. Here was an update in late January...

Bloom Energy leads in solid oxide fuel cells (SOFCs) for stationary on-site power, targeting data centers with efficient, grid-independent generation deployable in 90 days. Bloom has customers like Oracle (ORCL) and partners with Brookfield Corporation to supply datacenters with fast, clean, agile energy. 

Bloom also recently inked a $2.65 billion deal with American Electric Power (AEP) to provide fuel cells. I originally bought Bloom Energy shares in September because they had a chance to double revenues in under two years just like Generac did from 2020-2022 to $4.5 billion. Bloom Energy is projected to grow the topline by 38% this year to cross $2.6 billion.

(end of Jan notes)

In March, while tensions over Iran were rising, the AI infrastructure trade took a breather as oil prices and supply chain worries multiplied.

This sent BE shares below my suggested buy range of $130-140. On March 30th, I told my TAZR Trader group to grab more below $120. That proved to be a precision strike as the stock only stayed there for a few hours.

Oracle Re-Ups Their Orders

On April 13, the company announced a massive expansion of its partnership with Oracle to power the tech giant’s AI data center buildout. 

Under the new master services agreement, Oracle plans to procure up to 2.8 gigawatts of Bloom’s SOFC systems, with an initial 1.2 gigawatts already contracted.

Some excerpts from the press release will highlight the potential of this deal and more to come for Bloom...

The expanded partnership underscores Bloom’s capability to provide fast, reliable power suited for AI workloads, which require rapid, load-following support that traditional grids were not designed to deliver. Bloom’s systems are built to support higher-density AI workloads more efficiently, with a technology platform aligned to emerging standards such as 800 V dc.

“By rapidly deploying Bloom’s reliable, efficient fuel cell energy, we are quickly meeting the demands of our customers across the United States,” said Mahesh Thiagarajan, executive vice president, Oracle Cloud Infrastructure. “Together, Bloom and Oracle Cloud Infrastructure are building the power foundation and AI infrastructure to accelerate American AI leadership.”

This agreement builds on the companies’ existing partnership and reflects a broader shift toward distributed, onsite generation as a critical component of modern digital infrastructure. Bloom’s modular fuel cell systems can be deployed far faster than traditional power solutions, enabling customers to accelerate time-to-power and reduce project risk. Last year, Bloom Energy delivered a fully operational fuel cell system to Oracle in just 55 days -- more than a month ahead of the anticipated 90-day deployment schedule.

Revenue and Profit Estimates on the Rise

In just the few business days of collecting updated analyst estimates since the announcement, the Zacks Revenue consensus for 2026 has risen to $3.25 billion, representing over 60% annual growth.

And the Zacks EPS consensus has climbed to $1.38, for an 80%+ advance. I expect both the top and bottom lines to keep adjusting upwards for the next week as all the analyst models are reworked and submitted.

One thing to keep in mind is how far behind Wall Street analysts have been on this one-of-a-kind growth story. Jefferies and Bank of America stand out as they maintained sub-$40 price targets in Q4 of 2025 and only raised them conservatively even as new deals rolled in like that with AEP.

But after this news, the Jefferies analyst felt compelled to raise their PT to $187 from $97 in what could be assessed as a reluctant mea culpa.

So while we wait once again for the Street to catch up, if you don't own any Bloom Energy shares, I suggest buying now under $210. You could look to add to your position on a partial gap fill below $200.

Disclosure: Kevin Cook owns BE shares for the Zacks TAZR Trader portfolio.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

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This article originally published on Zacks Investment Research (zacks.com).

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