2 Hydrogen Stocks to Buy in August if You Believe in the Turnaround

Hydrogen stocks have spent years testing investors' patience. Still, August 2026 offers two very different reasons for optimism: one company inching toward profitability after a brutal reset and another already cashing in on the artificial intelligence (AI) power boom. If you believe the sector's turnaround is real, Plug Power (NASDAQ: PLUG) and Bloom Energy (NYSE: BE) are worth a close look.

Plug's inflection point

No stock better represents the boom-and-bust cycle of the hydrogen industry than Plug Power. Finally, though, Plug could be moving in a positive direction for good. In Plug's second quarter, the adjusted loss per share was just $0.07, beating expectations by a penny. Plug also hit $178.3 million in revenue, and gross margins approached breakeven.

Management has been cutting costs while simultaneously pushing growth. Operating expenses fell 50% year over year, while deployed units more than doubled to 1,666, and service revenue exploded 82% in the same time frame.

Plug maintains more than $160 million in cash and equivalents, and that number, combined with growth and lower costs, should give Plug plenty of runway to hit its targets. The turnaround story still has a long way to go, but it looks like the hydrogen fuel cell manufacturer is well on its way.

Plug's stock is down more than 90% from its all-time high but over the past 12 months has gained 40%.

Image source: The Motley Fool.

Bloom Energy is riding the power wave

Bloom Energy has momentum like few other companies can match. Bloom's solid oxide fuel cells have become one of the most in-demand power sources for AI data centers. This has led to outstanding quarterly earnings.

In 2026's Q2, Bloom's operating earnings jumped 680% year over year, crushing estimates. Revenue grew to over $1 billion, a 165% increase from the previous year. Management indicated this isn't a fluke and raised its guidance. Bloom now has $2.67 billion in cash and equivalents on the balance sheet.

The biggest issue with Bloom right now is its high valuation. Because the stock is up 140% in 2026 and approximately 350% over the past 12 months, it is far more expensive. Bloom's trailing price-to-earnings (P/E) ratio is nearly 300.

There's still a lot of growth to be captured, however. As AI-power demand continues to expand worldwide, Bloom should continue to reap the rewards.

Plug into Bloom

Plug and Bloom are in very different places right now. Plug could see massive upside potential simply because it is a beaten-down company on the rebound. Bloom, though, has momentum and is executing well. Both companies offer exciting growth potential for investors who believe hydrogen power is here to stay.

Catie Hogan has positions in Plug Power. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.