Shares of FuelCell Energy (NASDAQ:FCEL) slid 22% in Monday morning trading, while Plug Power (NASDAQ:PLUG) shares dropped 12%. The selloff hits two of the loudest winners of the AI power trade. The hydrogen rally is taking a breather after weeks of euphoric upside.
The pullback comes after a remarkable run. FuelCell Energy stock has surged 130% in the past month, while Plug Power stock has climbed 20% over the same stretch. Both names sit on enormous gains from a year ago.
Today’s drop looks like profit-taking and a reassessment of the bull case, not the end of the trade. The hydrogen basket simply got crowded, and the AI data center power narrative ran ahead of the fundamentals. Now investors are reweighing the math.
FuelCell Energy’s AI Catalyst Cools
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The recent FuelCell Energy stock run included a 34% pop on the launch of a new “AI-ready” data center platform aimed at AI-driven electricity demand. FuelCell Energy CEO Jason Few has been positioning the company toward that data center power market. Monday’s reassessment centers on revenue concentration and a fiercely competitive landscape.
The Q4 FY2025 fundamentals were solid on the surface. FuelCell Energy’s revenue came in at $55.02M, up 12% year over year, and EPS of -$0.85 beat the -$1.18 estimate. Yet, FuelCell still carries a trailing EPS of -$6.49 and absorbed a $65.8M solid oxide impairment during the fiscal year.
Wall Street hasn’t validated this rally. The FCEL stock analyst consensus target sits at $8.24, well below recent trading levels. Coverage breaks down to six Hold ratings, one Sell, and one Strong Sell, with no Buys on the board.
Plug Power Slips Despite Margin Progress
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The Plug Power selloff stings more given the improving fundamentals. Plug Power’s Q1 2026 revenue hit $163.5 million, up 22% year over year, exceeding analyst expectations. Adjusted EPS of -$0.08 also beat the -$0.10 consensus.
The margin story is the headline. Plug Power expanded its GAAP gross margin from -55% to -13% on cost-cutting and operational efficiency. CEO Jose Luis Crespo is targeting positive EBITDAS in Q4 2026, positive operating income by the end of 2027, and full profitability by the end of 2028 in earnings before interest, taxes, depreciation, amortization, and stock-based compensation (EBITDAS).
However, Plug Power stock is still climbing out of a brutal long-term hole. PLUG shares are down 87% over the past five years even after the 353% one-year rally. That tension is what today’s tape is reflecting.
One Basket, One Selloff
When the hydrogen trade runs, it often runs together. As momentum traders rotate out, names like FuelCell Energy and Plug Power move in lockstep regardless of company-specific fundamentals. That’s the dynamic playing out on Monday, evidently.
The bull case seems to remain intact, though: AI data center power demand is structural, Plug Power’s margin trajectory is genuine, and FuelCell’s power purchase agreement (PPA) backlog Hartford 20-year PPA worth $167.4M provides visibility. The bear case is also intact: hydrogen unit economics remain unproven at scale, FuelCell’s at-the-market (ATM) equity program $200M ATM program creates a dilution overhang, and FCEL stock is still down 91% over five years even after this year’s run.
What to Watch
Keep an eye on whether today’s pullback finds support or extends through the week. Any fresh analyst commentary on FuelCell Energy’s data center pipeline or Plug Power’s asset monetization milestones could reset sentiment quickly.
Plug Power’s $39.2M ITC sale slated for end of May and the investment tax credit (ITC) sale $142M Stream Data Centers closing in June 2026 are near-term catalysts worth tracking. For investors who chased the rally near the top, today is a reminder that hydrogen remains a high-beta sector trade. Position sizing and discipline matter here more than conviction.
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