Bloom Energy Is Up 190% This Year. Here's The Math Behind the Move.

Bloom Energy (NYSE: BE), a developer of solid oxide fuel cells (SOFCs), was once considered a niche green energy company with limited growth potential. But over the past two years, its stock has rallied 2,360%. It's also rallied 190% this year, easily beating the S&P 500's (SNPINDEX: ^GSPC) 11% gain. It's also set to join the benchmark index on Sept. 21. Let's see why Bloom's stock attracted a stampede of bulls -- and if it will maintain that momentum.

Why did Bloom Energy's stock skyrocket?

Bloom's SOFCs can convert natural gas, biogas, propane, and hydrogen into electricity without any combustion. They can be deployed rapidly, often in less than two months, and bypass traditional power grids that often require years to set up new connections.

Image source: Getty Images.

Over the past few years, big data center operators -- including Oracle, CoreWeave, Nebius, and Equinix -- have deployed Bloom's SOFC systems as a greener, faster way to expand their infrastructure.

From 2023 to 2025, its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew at CAGRs of 23% and 82%, respectively. By the end of 2025, Bloom's backlog had swelled to $20 billion, or nearly ten times the revenue it generated for the full year. That backlog should continue to grow as more companies order Bloom's SOFCs to serve the power-hungry cloud infrastructure and AI markets. The recent introduction of its new Power Connect system -- which could reduce its on-site installation time by more than 40% -- could further widen its moat against other SOFC manufacturers.

Bloom already leads the market for stationary, multi-megawatt, utility-scale SOFC deployments. Brookfield Asset Management (NYSE: BAM), one of the world's top asset managers, funds the production and deployment of those systems through a $25 billion partnership.

Why could Bloom's stock soar even higher?

From 2025 to 2028, analysts expect Bloom's revenue and adjusted EBITDA to grow at CAGRs of 70% and 120%, respectively, as the demand for its SOFCs outstrips its supply. With an enterprise value of $81 billion, it trades at 45 times next year's adjusted EBITDA.

Bloom's stock isn't cheap, but it could command an even higher valuation as long as the AI market keeps expanding. According to Fortune Business Insights, the SOFC market could expand at a 32.4% CAGR from 2026 to 2034. If Bloom stays at the top of this booming market, it could generate multibagger gains for its patient investors over the next decade.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, Equinix, and Oracle. The Motley Fool has a disclosure policy.