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Bloom Energy: The Answer to the AI Power Problem

Key Takeaways

  • AI energy demand is expected to surge.
  • Bloom Energy allows data centers to generate reliable, clean, onsite energy.
  • BE is a momentum leader.

Bloom Energy Company Overview

Bloom Energy ((BE - Free Report) ) is a clean-energy/fuel-cell provider that designs, manufactures, and installs solid-oxide fuel cell (SOFC) systems that generate electricity onsite. Bloom Energy’s technology converts fuels such as natural gas, biogas, and hydrogen into electricity without combustion, offering high efficiency and low emissions compared to traditional generators.

Bloom Energy: Fueling the AI Revolution

Currently, the lack of consistent, clean, and sufficient energy is the biggest roadblock for the AI revolution. AI data centers require immense amounts of energy to run the high-performance computers needed to train AI models such as OpenAI’s “ChatGPT” or Alphabet’s ((GOOGL - Free Report) ) “Gemini”.

AMD Analyst Day Suggests AI Computing Demand Remains High

Advanced Micro Devices ((AMD - Free Report) ) is one of the leading GPU providers. In a recent CNBC interview, AMD CEO Lisa Su suggested AI spending is unlikely to slow, saying: “In the past twelve months, all of our customers have said, demand is accelerating because now we are starting to get real productivity out of the AI use cases. We have all the largest hyperscalers in the world saying that they are investing more in CAPEX because they can see the return on the other side of it.” When asked about whether the CAPEX spending boom is a gamble, Su replied, “I don’t think that it’s a big gamble; it’s the right gamble.”

Wall Street analysts predict that US data center electricity demand will soar into the end of the decade.

Zacks Investment Research
Image Source: Bloomberg

Soaring data center energy consumption is likely to lead to backlash for AI companies as US household electricity prices balloon. That’s a bullish trend for Bloom Energy. BE’s onsite and low-cost energy solutions allow big tech companies to generate power onsite and avoid relying on the already overworked US electric grid.

BE: Defying Wall Street Analyst Expectations

Bloom Energy is showing the power of selling the “picks and shovels” to the AI revolution. Over the past four quarters, BE has smashed Zacks Consensus Analyst Estimates by an average of 88.25%.

Zacks Investment Research
Image Source: Zacks Investment Research

BE 1St Retreat to 50-day Moving Average

After rising 7x in 2025, BE shares are retreating to the 50-day moving average for the first time all year. A tag of the rising 50-day moving average in a leading stock like BE offers investors a fantastic reward-to-risk opportunity.

Zacks Investment Research
Image Source: TradingView

Bottom Line

As the AI revolution accelerates, energy demand is emerging as both its greatest challenge and biggest opportunity. Bloom Energy’s innovative fuel cell technology directly addresses this bottleneck.


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