This Unstoppable Onsite Power Stock Is Quietly Solving AI's Biggest Bottleneck

Bloom Energy (NYSE: BE) is perfectly positioned for the artificial intelligence spending boom underway today. In fact, the company's backlog for hydrogen fuel cells at the start of 2026 rose over 2.5x year over year, hitting $6 billion. But the real story here is the other $14 billion of the total $20 billion backlog, which is related to services.

What does Bloom Energy do?

Bloom Energy makes hydrogen fuel cells. They are built in a factory and can be delivered wherever they are needed to provide on-site power. The power generated doesn't produce greenhouse gases, either, so it is clean energy. The company has been building its business and improving its technology for many years, but the current environment is almost the perfect setting for success.

Image source: Getty Images.

Spending on artificial intelligence (AI) has exploded. But AI is just a fancy computer program, so it can't operate without electricity. Electric utilities are working to supply the power needed, but building electric infrastructure takes time. And there has been pushback from consumers and regulators around the impact that AI demand is having on power prices.

Bloom Energy's on-site power lets AI companies sidestep the grid. And Bloom Energy can usually deliver power cells more quickly than a utility can provide a grid connection, speeding up the construction of new AI data centers. No wonder the company started 2026 with a $6 billion backlog of fuel cell orders, up 2.5x year over year.

Bloom Energy's real flywheel is services

That said, the company's full backlog is around $20 billion. The other $14 billion relates to the service contracts that accompany the sale of a fuel cell. These are long-term contracts that provide annuity-like income streams. Each new product sale builds the company's long-term service momentum. Although Bloom Energy is really just a start-up that has yet to turn sustainably profitable, that could change very soon.

The only problem with Bloom Energy's story is that it is so well-known on Wall Street. The stock is up over 1,000% over the past year. Without sustainable earnings, the price-to-earnings ratio isn't meaningful. However, the price-to-sales ratio is shockingly high at 29x, compared to a five-year average of 3.1x. The forward P/E ratio is 134x. That is high and shows just how much investors are expecting from the company.

Bloom Energy is probably best left on your wishlist for now, given the stock's rapid ascent. However, if the AI bubble on Wall Street bursts, Bloom Energy's massive service backlog could make it worth a second look.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.