Bloom Energy Is Down 43% From Its High. Should You Buy the Dip?

Bloom Energy (NYSE:BE) had a knockout third quarter, with growth on all sides of its business. Third-quarter revenue came in at $1.24 billion, up 138% year over year, and full-year 2026 guidance was raised again, this time to a range of $4.4 billion to $4.6 billion. Bloom announced another major deal, this one with information technology services company NTT DATA, to deploy 900 megawatts of fuel cell power to its data centers across the world. If that project materializes, it will be Bloom's largest international deployment yet.

Image source: Bloom Energy.

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And yet, like other stocks linked to the artificial intelligence (AI) infrastructure build-out, Bloom has seen better days in the market. The stock is down roughly 43% from its 52-week high of about $350, currently trading for about $200.

So what gives? And more importantly -- should you buy the dip?

Certainly, concerns over a potential slowdown in data center construction have weighed heavily on the clean energy stock. Since data center developers have been driving much of Bloom's extraordinary growth, any slowdown could make it harder for the company to deliver the sales that Wall Street is counting on.

Indeed, Bloom's valuation was already hard to swallow before the AI jitters hit Wall Street, and it still is, even after its decline. The stock currently trades at about 62 times its projected adjusted earnings for the year. That's much higher than for other AI industrial stocks.

BE PE Ratio (Forward) data by YCharts

At the same time, Bloom is growing much faster than other industrial companies, with an order backlog that stands at about $20 billion. Sure, its valuation demands strong execution, but Bloom's recent results make me feel confident it can rise to the challenge. For investors willing to hold through the volatility, I think the pullback offers an opportunity to open a small position in a business with plenty of growth ahead.

Steven Porrello 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.