Bloom Energy will join the S&P 500 on Sept. 21, extending a rally that has already tripled its stock price this year. The fuel-cell maker's data-center power technology has driven surging revenue as hyperscalers and AI labs turn to it for on-site electricity, and the company has raised its 2026 guidance twice.
Bloom Energy's rally picked up more steam Tuesday after the company said it would join the S&P 500 on Sept. 21. The move caps an extended surge that has tripled the stock's price year to date, and the state of the AI buildout suggests the run may not be finished.
Fuel cells fill a power gap in the AI boom
Data centers need more than chips and servers to run — they need electricity, and supply is a major bottleneck limiting how fast AI infrastructure can scale. Bloom Energy's solid oxide fuel cells have become a standard option for supplying that on-site power. As CEO KR Sridhar said in the company's Q2 earnings report, hyperscalers and AI labs "have validated and approved our power solutions for their AI factories."
That positioning is already showing up in the numbers. Bloom Energy delivered 165.5% year-over-year revenue growth in the second quarter, with its product segment more than tripling.
Guidance keeps climbing
Management has raised revenue guidance in back-to-back quarters as demand accelerates. In the first quarter, Bloom Energy raised its 2026 guidance from 60% revenue growth at the midpoint to 80%, then lifted it again in the second quarter to a level that forecasts total sales more than doubling year over year. That followed a quarter in which revenue grew 42% sequentially to $1.065 billion. The result prompted management to boost its full-year revenue guidance range to $3.9 billion to $4.2 billion.
Chip deals point to a longer buildout
The bullish case for Bloom Energy rests on continued AI capital spending, and recent deals suggest that spending has staying power. Samsung has locked in sales contracts for 70% of the memory chips it will produce through 2031. Broadcom, meanwhile, offered guidance for both fiscal 2027 and fiscal 2028 while only halfway through fiscal 2026.
Multiyear deals between chipmakers and the tech giants buying their components give those companies revenue visibility years out. Every one of those chips and servers still needs a power source, and as long as that buildout keeps rolling, some of the resulting capital spending should keep flowing to Bloom Energy.
Source: The Motley Fool
Trading involves risk.
Risk Disclaimer
