AI Data Center Trade Fuels Bloom Energy (BE) Rally — Is It Sustainable?

Core Viewpoint - Bloom Energy Corporation is recognized as a notable player in the AI stock market, with a recent price target increase by BofA Securities, although it maintains an Underperform rating [1][2]. Group 1: Company Performance - Bloom Energy has achieved significant contracts with major companies like American Electric and Oracle, positioning it as a key beneficiary in the AI data center sector [2]. - The stock has experienced a remarkable rally of over 650% in the past year, indicating strong market interest [2]. Group 2: Financial Outlook - Despite the stock's surge, the company's fundamentals do not support this growth, as major contract wins have not altered the company's guidance [3]. - The Fremont 1GW facility is operating at less than 50% utilization, raising concerns about operational efficiency [3]. - Supply chain assessments suggest that revenue growth is more aligned with the firm's 2026 outlook, which is significantly below market expectations for 2026-28 [4]. Group 3: Investment Considerations - While Bloom Energy shows potential as an investment, there are other AI stocks that may offer better upside potential with lower downside risk [5].