Fuel Cell Surge: Bloom Energy Stock Soars on AI Data Center Demand

Bloom Energy shares are experiencing remarkable momentum, propelled by twin analyst endorsements from prominent financial institutions. Both JPMorgan and Evercore ISI have issued bullish buy ratings on the clean energy company’s stock, with dramatically increased price targets. JPMorgan has doubled its projection to $90 by December 2026, while Evercore ISI sets an even more ambitious target of $100 per share.

The company’s stock currently trades at $90.19, reflecting an extraordinary 300 percent surge since the beginning of 2025. This performance dramatically outpaces the broader oil and energy sector, which has managed average gains of just 5.9 percent over the same period.

Artificial Intelligence Drives Unprecedented Demand

The primary catalyst behind this investor enthusiasm stems from Bloom Energy’s strategic positioning within the exploding artificial intelligence infrastructure market. According to JPMorgan analyst Mark Strouse, the company’s onsite power generation systems are witnessing unprecedented demand from data center operators. Despite current factory utilization rates standing at just 35-40 percent of gigawatt capacity, the stock appears to be pricing in expectations of significantly higher utilization levels.

“We believe risks remain skewed to the upside if Bloom can secure additional orders,” Strouse noted. Potential near-term catalysts include expanded bookings with existing clients such as AEP and Oracle, alongside new strategic partnerships.

Market excitement has been particularly fueled by reports of Bloom Energy’s involvement in a planned 900-megawatt power facility in Wyoming. If realized, this would represent the company’s largest project to date, designed specifically to power a massive AI data center campus.

Strategic Alliances Strengthen Market Position

The company has secured significant partnerships with technology giants including Oracle to provide specialized power solutions for AI data centers. These collaborations demonstrate Bloom Energy’s capability to meet the unique electricity requirements of next-generation computing infrastructure.

Should investors sell immediately? Or is it worth buying Bloom Energy?

Earlier in 2025, the firm announced additional strategic moves, including a collaboration with Chart Industries to develop integrated carbon capture solutions for natural gas-powered fuel cells.

Valuation Concerns Amid Strong Momentum

Despite the overwhelming analyst optimism, questions regarding valuation persist. Simply Wall St analysis indicates a fair value estimate of $43.78 per share—significantly below the current trading price and suggesting potential overvaluation of approximately 106 percent. However, alternative valuation methods using discounted cash flow models calculate a fair value of $93.67, slightly above the present market price.

JPMorgan acknowledges the premium valuation but highlights limited transparency regarding Bloom’s order backlog as a complicating factor. Data center customers frequently decline to disclose specific contract details, creating both risk and potential opportunity for investors.

Technical and Fundamental Outlook

From a sector perspective, Bloom Energy maintains a Zacks Rank of #1 (Strong Buy), with consensus earnings estimates for the year surging 79.5 percent over the past 90 days. This substantial improvement in analyst sentiment reflects strengthening fundamental performance and increasingly positive profit expectations.

The company operates within the Alternative Energy – Other industry group, which has advanced approximately 40.2 percent year-to-date. Bloom Energy’s 300 percent gains therefore substantially exceed even its high-performing sector peers.

Market participants are now looking toward Bloom Energy’s quarterly results scheduled for November 2025 as the next significant catalyst. Investors will closely monitor updates on order backlogs, factory utilization rates, and development progress on major projects including the Wyoming power facility.