BE Stock: Bloom Energy’s AI Power Surge

Bloom Energy [BE] is an on-site power generation company that manufactures fuel cell systems that produce electricity from natural gas, biogas and hydrogen.

On 21 September, Bloom Energy will join the US benchmark index S&P 500, marking a meteoric rise for a company that was valued at less than $2.5bn two years ago. At the time of writing, Bloom Energy’s market capitalisation was over $81bn.

This stock spotlight discusses the implications of BE’s S&P 500 inclusion, the company’s role in the artificial intelligence (AI) infrastructure buildout, earnings and more. 

Bloom Energy enters S&P 500

The S&P Dow Jones Indices will add Bloom Energy, data management solutions provider Everpure [P] and gene sequencing biotech Illumina [ILMN] to the S&P 500 in September, at the expense of Molson Coors [TAP], The Trade Desk [TTD] and Builders FirstSource [BLDR].

The most immediate implication for Bloom is an increase in institutional ownership, as funds tracking the S&P 500 will be forced to buy BE shares to reflect the underlying index’s new composition.

The rise of passive investing through exchange-traded funds (ETFs) has made inclusion in the S&P 500 increasingly important. ETFs attracted a record $2tn in inflows globally in 2025, according to State Street Investment Management, while global ETF assets under management (AUM) are expected to grow from $18.21tn in 2025 to $33.30tn by 2030. 

A significant share of the passive investment influx will flow into S&P 500 constituents, given that it is the world’s most-tracked index by AUM and represents more than 50% of the global equity market capitalisation.

Following the news of Bloom Energy’s inclusion, UBS analyst Manav Gupta raised BE stock’s price target to $325 from $300 while maintaining a ‘buy’ rating. Gupta argued that joining the S&P 500 will increase BE’s passive fund ownership, broaden its institutional shareholder base and increase trading activity.

Bloom Energy and the AI infrastructure buildout

Rising electricity demand to power AI data centres has put Bloom Energy in the investor spotlight. Over the past two years, BE shares have surged more than 2,400% from $10.20 on 13 September 2024 to $257.05 by the close on 14 September 2026.

The investment narrative around Bloom Energy is built on expectations that power will become the biggest supply-side constraint for the AI infrastructure buildout. 

Limited spare grid capacity, slow grid expansion, lengthy connection wait times as long as 10 years and public scrutiny over soaring electricity prices are already pushing AI data centres to consider on-site power generation solutions for both primary and backup supply.

Oracle [ORCL], Intel [INTC] and Equinix [EQIX] are among data centre clients that have deployed Bloom’s on-site fuel cell technology. Bloom’s solution ticks several boxes that data centre operators are looking for: it is deployable in as little as 90 days, provides “always-on” power reliability, is easily scalable and offers clean power.

Adoption of Bloom’s fuel cell technology is being supported by global investment firm Brookfield Asset Management [BAM]. In June 2026, the companies expanded their strategic partnership from $5bn to $25bn to deploy Bloom’s fuel cell technology at AI data centres.

Bloom also has a partnership with investment adviser Industrial Development Funding, which is leading to a $1.7bn project investment to deploy Bloom’s fuel cell technology at Nebius’ [NBIS] AI data centres.

Record revenue and profitability turnaround

In Q2 2026, Bloom Energy posted blockbuster earnings, with quarterly revenue surging 165.5% year-on-year to a record $1.065bn. It was the second consecutive quarter that Bloom more than doubled its revenue from the year-ago quarter.

GAAP gross margin came in at 33.4% for the period compared to 26.7% a year ago. GAAP net profit came in at $196.29m compared to a loss of $42.62m a year ago.

Diluted GAAP EPS was $0.62 in Q2 compared to $0.23 in Q1 and -$0.18 a year ago.

At the end of Q2, Bloom’s total debt stood at $2.53bn, while cash and cash equivalents came in at $2.66bn.

Bloom Energy guided full-year 2026 revenue to a range of $3.9bn-4.2bn, representing a 100.5% increase at the midpoint from the $2.02bn reported in 2025. 

2026 non-GAAP gross margin is expected to be about 34% compared to 30.3% reported in 2025. 

Non-GAAP operating income is expected to fall in the range of $800m-900m versus $221.02m reported in 2025.

Power players: BE vs GEV vs PLUG

GE Vernova [GEV] develops electric power generation systems. According to Bloomberg, GE Vernova, Siemens Energy AG [SMERY] and Mitsubishi Heavy Industries [MHVIY] accounted for 66% of global gas turbine production in 2025. GE Vernova estimates that its installed base generates about 25% of the world’s electricity. 

Plug Power [PLUG] develops fuel cells that convert hydrogen to electricity. The company aims to build an end-to-end hydrogen ecosystem spanning production, storage, delivery and energy generation.

Here is how the three stocks’ fundamentals compare, as of the 14 September close:

Source: Yahoo Finance

BE stock: The investment case

The bull case for Bloom Energy: Structural tailwinds

The AI infrastructure buildout has created structural tailwinds for Bloom Energy. US electricity demand is expected to rise by as much as 25% by 2030 from 2025 levels, according to S&P Global. With grid capacity slow to expand, on-site power generation is expected to help meet growing demand. 

Bloom Energy expects one-third of hyperscalers and colocation providers to operate data centres powered entirely by on-site generation by 2030.

The bear case for Bloom Energy: Premium valuation

Bloom Energy’s meteoric share price surge has left investors exposed to valuation risk. BE was trading at 25 times sales as of 14 September, as shown by the table above, significantly higher than GE Vernova and Plug Power. This premium valuation demands sustained revenue growth and profitability. 

A slowdown in AI infrastructure spending could put pressure on BE’s share price, while high upfront capital investment associated with on-site power generation, lengthy project timelines and competition from other power generation technologies could weigh on future growth.

Conclusion

Bloom Energy enters the S&P 500 after a period of strong revenue growth and improving profitability. Its inclusion strengthens BE’s reputation as a premium AI power stock. However, maintaining this momentum will be increasingly difficult as its valuation and recent earnings performance raise investor expectations.