Bloom Energy Stock Sank Again This Week. Is It a Buying Opportunity?
Key Points
Bloom Energy stock tanked this week, but then investors jumped back in.
AI infrastructure investments aren't an illusion.
Owners of data centers could increasingly look to Bloom for power.
- 10 stocks we like better than Bloom Energy ›
Bloom Energy (NYSE: BE) shares fell along with much of the tech sector this week, as investors shed the artificial intelligence (AI) stocks. Bloom has been a beneficiary of the AI boom as a data center power equipment supplier.
After plunging by as much as nearly 15% mid-week, however, some investors saw an opportunity. As of Friday mid-morning, Bloom shares remained lower for the week, but only by 6.8%, according to data provided by S&P Global Market Intelligence.
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Image source: Bloom Energy.
Data centers aren't dead
Bloom stock took off starting in July when the company announced a collaboration with Oracle to provide fuel cell power for planned AI data centers. News in October that the fuel cell maker would partner with Brookfield Asset Management on another $5 billion data center project venture only juiced investors' desire to own Bloom stock.
Concerns of a growing bubble burst the trade this week, though. Bloom shares did get ahead of the business prospects with its monster 560% gain between July and November. But after this week's move cut the stock nearly in half, investors are back buying the dip.
Bloom still looks expensive with a market cap of over $21 billion. But the business could certainly grow into that valuation over time. Long-term investors may still have a market-beating stock as data center power needs continue to grow.
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Howard Smith has positions in Bloom Energy and has the following options: short January 2026 $60 calls on Bloom Energy. The Motley Fool has positions in and recommends Brookfield Asset Management and Oracle. The Motley Fool has a disclosure policy.
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