Prediction: This Energy Stock Will Make You a Lot Richer by 2029

Shares of Bloom Energy (NYSE: BE) are up more than 250% so far this year. That quick rise may make some investors cautious, but there are plenty of solid reasons for the stock's ascendance. The company is at the nexus of renewable energy and artificial intelligence (AI), as its fuel cell energy solutions are increasingly used by hyperscalers to address bottlenecks in powering new data centers.

Are there risks to the stock? Most definitely. It trades at more than 140 times forward earnings, as investors have largely priced in its backlog. Even so, here are three reasons why Bloom Energy is worth buying -- and why the stock should continue to generously reward investors.

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Bloom's solid oxide fuel cells can be deployed quickly

Microsoft, Alphabet, Meta Platforms, and Oracle are spending billions on next-generation AI data centers, but traditional electrical grids are severely bottlenecked. Expanding a localized grid or waiting on a nuclear plant can take years.

Bloom's solid oxide fuel cells generate on-site electricity and can be deployed and operational in as little as 90 days. By bypassing traditional power grids, tech companies ensure their high-dollar AI chips don't sit idle waiting for power.

These fuel cells use renewable natural gas, biogas, or hydrogen, converting it to electricity without combustion and with minimal carbon dioxide emissions.

It has a huge backlog with big tech

Bloom's growth is no longer a speculative story; it is backed by concrete, massive commercial contracts. As of the end of 2025, the company said it had a backlog of $20 billion, including a product backlog of $6 billion.

In April, Bloom expanded its agreement with Oracle to support up to 2.8 gigawatts (GW) of fuel cell capacity. This includes Project Jupiter, a massive, multigigawatt AI data center campus in New Mexico that runs entirely on Bloom fuel cells rather than traditional gas turbines or diesel generators.

In May, Bloom secured a 328-megawatt (MW) deployment deal with AI infrastructure company Nebius, providing deep multiyear visibility for revenue generation.

It has reached a financial turning point

Historically, fuel cell companies have struggled to turn a profit despite rising revenue. Bloom is actively breaking out of that mold, showcasing real operating leverage. In its first-quarter earnings release, Bloom reported a record $751.1 million in revenue, a massive 130.4% year-over-year increase.

Driven by manufacturing-scale benefits, its gross margin expanded beyond 30%, allowing the company to report net income of $70.6 million, up from a loss of $19.1 million in the first quarter of 2025. Earnings per share (EPS) were $0.23, compared to an EPS loss of $0.10 in the same quarter a year ago, while adjusted EPS was $0.44.

The earnings were a surprise to some analysts, who had predicted revenue of $539.94 and adjusted EPS of $0.12. The numbers were strong enough to prompt management to raise its full-year revenue guidance to $3.4 billion to $3.8 billion, an increase of 80% at the midpoint, and to raise adjusted EPS to between $1.85 and $2.25, up 170% at the midpoint.

Things to look out for

Bloom has a few issues, but they're mostly good concerns. The company will have to spend to double factory capacity from 1 gigawatt to 2 gigawatts by the end of 2026. It also faces competition from Plug Power and FuelCell Energy.

The premium attached to Bloom Energy is massive and introduces considerable valuation risk, but it is supported by triple-digit revenue growth and positive cash generation, whereas Plug Power is an improving turnaround play with tight cash constraints, and FuelCell Energy remains trapped in a pattern of shrinking revenue and widening losses.

In the long run, given the push for renewable energy and the way AI is driving the need for more data centers, Bloom is in a good spot to benefit from long-term trends.

James Halley has positions in Alphabet and Microsoft. The Motley Fool has positions in and recommends Alphabet, Bloom Energy, Meta Platforms, Microsoft, and Oracle. The Motley Fool has a disclosure policy.