Data Center Demand Is Transforming FuelCell Energy. Should You Buy FCEL Stock After Earnings?

Core Insights - FuelCell Energy (FCEL) reported fiscal fourth-quarter earnings that exceeded expectations, resulting in a 22% intraday stock gain on December 18 [1] - The company is focusing on data centers to drive higher energy demand, engaging with operators and infrastructure finance providers to highlight its capabilities in powering energy-intensive applications [2] - FuelCell anticipates increased production due to rising AI demand, aiming for an annualized production rate of 100 megawatts, which is expected to lead to positive adjusted EBITDA [3] Company Overview - FuelCell Energy, based in Danbury, Connecticut, specializes in developing stationary fuel cell platforms for sustainable power production, utilizing molten carbonate technology to generate ultra-clean electricity with minimal emissions [3][4] - The company offers versatile platforms that support carbon capture, hydrogen and water production, and long-duration energy storage solutions tailored for utilities, industries, and municipalities [4] - FuelCell Energy has a market capitalization of $269.34 million [4] Stock Performance - The stock has experienced volatility amid broader market fluctuations, compounded by new tax legislation that limits clean hydrogen production credits under the Inflation Reduction Act [5] - Over the past 52 weeks, FuelCell's stock has decreased by 10.6%, but it has gained 37.17% in the last six months, reaching a 52-week high of $13.98 in January and a low of $3.58 in May, representing a 133% increase from the low [6]