AI Data Centers Need More Power and Bloom Energy Could Be a Big Winner
Hyperscalers are scrambling for power that the grid simply cannot deliver fast enough, and one fuel cell company just reported a 165% revenue surge while its stock sits 12% off its peak. The question is whether the selloff is a…
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Bloom Energy (NYSE:BE) has become the poster child for onsite power at AI data centers, and the numbers match the narrative. Our 24/7 Wall St. price target for Bloom Energy is $239.45, implying 17.37% upside from the current price of $204.02. That earns a buy rating at high confidence.
24/7 Wall St. Price Target Summary
| Metric | Value |
|---|---|
| Current Price | $204.02 |
| 24/7 Wall St. Price Target | $239.45 |
| Upside | 17.37% |
| Recommendation | BUY |
| Confidence Level | 90% |
Bloom sits in a scarcity trade: hyperscalers cannot get grid power fast enough, and Bloom can. At roughly 78x forward earnings and a beta near 4, this is a high-conviction, high-volatility name.
Our buy reflects the target upside plus accelerating revenue, expanding margins, and a $25 billion Brookfield financing shelf behind the backlog.
Record Quarter, Raised Guide, and a One-Week Pullback
Bloom is up 134.8% year to date and 320.31% over the past year, yet pulled back 12.12% in the last week from a 52-week high of $351.28. The pullback follows a Q2 FY2026 report: revenue of $1.065 billion (up 165.52% YoY), non-GAAP EPS of $0.78 versus a $0.406 consensus, and raised FY2026 guidance to $3.9 billion to $4.2 billion in revenue.
CEO KR Sridhar stated: “Today, all the major US hyperscalers, and over a dozen US neoclouds, AI labs, and co-location data center operators have validated and approved our power solutions for their AI factories.” That matters because 80% of 2025 bookings were repeat orders.
Why Bulls See a Breakout Above $300
The bull case starts with backlog. Bloom exited FY2025 with a $20 billion total backlog and a $6 billion product backlog, up roughly 2.5x YoY. Brookfield expanded its financing partnership from $5 billion to $25 billion in June. Management cites industry estimates of 30 to 40 gigawatts of new AI data center capacity coming online in 2027, against Bloom’s 1.5 GW deployed base.
Analyst consensus sits at $275.08 with 5 strong buys and 10 buys. Our bull scenario points to $315.46 over 12 months if operating margin holds near the 22.5% Q2 level and Brookfield capital accelerates deliveries.
What Could Go Wrong
Valuation is the obvious risk. Bloom trades at 262x trailing earnings and 19x sales. A single canceled hyperscaler project or an AI capex pause would compress that multiple. Reddit chatter flagged a Texas grid audit that paused new data center builds.
Scandium supply and tariff exposure remain live risks, though management has visibility for 25 gigawatts of deployments and is not dependent on China.
Q2 net income grew 560.57% YoY. Our bear scenario sees $180.81 if AI capex slows.
How Bloom Compares to GE Vernova and Plug Power
GE Vernova (NYSE:GEV | GEV Price Prediction) is the direct scale competitor for data center power. GEV carries a $251 billion market cap and reported Q2 revenue of $11.1 billion with a $176 billion backlog.
Data center orders exceeded $5 billion year to date at GEV, more than double 2025. GEV’s backlog stretches into 2029, while Bloom ships in months. That time-to-power gap is what our target assumes Bloom keeps monetizing.
Plug Power (NASDAQ:PLUG) shows the gap in scale and profitability. It posted Q2 revenue of just $178.3 million with an adjusted loss of $0.07 per share and a market cap near $3 billion.
Plug targets positive EBITDAS for Q4 2026; Bloom already generated $226 million in operating cash flow in a single quarter. Bloom trades at premium multiples because it is the only pure-play fuel cell company with hyperscaler validation and cash generation.
Bloom Energy Price Prediction 2026-2030
Our 24/7 Wall St. price target for Bloom Energy is $239.45, a buy at 90% confidence. Execution tips the scale: four straight EPS beats, 100% guided revenue growth for FY2026, and hyperscaler standardization.
Watch AI capex commentary from Microsoft, Meta, and Oracle into year-end, and monitor Q3 for any material bookings slowdown or Brookfield utilization stall.
Bloom is one slice of the AI power buildout, and we mapped seven more suppliers (power, cooling, networking) in a free report here: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers).
| Year | 24/7 Wall St. Price Target |
|---|---|
| 2026 | $221 |
| 2027 | $242 |
| 2028 | $255 |
| 2029 | $310 |
| 2030 | $308 |
These projections assume Bloom continues executing on its AI data center strategy and Brookfield financing converts steadily. Meaningful upside or downside could come from hyperscaler capex trajectory, scandium supply resolution, or changes to Section 45V and Investment Tax Credit policy.
Contact [email protected] for any questions or corrections.
Vandita Jadeja is a financial publisher with over a decade of experience writing about financial topics, including investment, savings, retirement, insurance and banking. Vandita is a Chartered Accountant who loves to debunk financial concepts for readers.
Her work has appeared on sites that include The Motley Fool, InvestorPlace, and Benzinga. She covers investing and focuses on stock picks and price prediction for 24/7 Wall St.
When not looking for the next stock investment opportunity, she can be found traveling, reading, chasing sunsets and enjoying her iced latte.
