Bloom Energy Is Joining the S&P 500: Is the Stock Still a Buy After Its Massive Run?

Bloom Energy (NYSE: BE) stock has gone on an explosive run and has officially earned a spot in the S&P 500. On Sept. 4, S&P Dow Jones announced that Bloom Energy, along with Illumina and Everpure, would join the index, while Molson Coors, Builders FirstSource, and The Trade Desk were removed.

Bloom Energy jumped after hours on the news, and the stock is set to join the S&P 500 on Sept. 21. Bloom has been a primary beneficiary of the huge power demand coming from artificial intelligence (AI) data centers, which hyperscalers continue to invest in at a staggering rate.

Image source: The Motley Fool.

After its run-up and its inclusion in the S&P 500, is Bloom Energy still a buy? Let's dive into its long-term outlook to find out.

Bloom Energy addresses a major bottleneck hyperscalers are facing

The AI data center build-out has revealed power as a major bottleneck for hyperscalers. For one, securing a transmission connection to a regional power grid can take four to seven years. Regional transmission operators face enormous backlogs and severe supply shortages of high-voltage power transformers and other vital infrastructure.

On top of this, local communities and public utilities are facing pushback from residents on data center construction. Residential customers don't want to bear the costs of the capital expenditures required to expand the power grid just to connect new data centers. As a result, hyperscalers are seeking independent, off-the-grid power alternatives like Bloom Energy's solid-oxide fuel cells.

Bloom's fuel cells run on natural gas but can also run on biogas or hydrogen using an electrochemical reaction rather than combustion. Its biggest competitive advantage is that its fuel cells are factory-fabricated and can be installed on-site in three to four months, helping hyperscalers get their data centers up and running significantly faster since they don't have to wait to connect to the electric grid.

The company's fuel cells have been validated by hyperscalers and neocloud customers. Notably, in 2024, Bloom Energy delivered its fuel cell power system for an Oracle cloud infrastructure AI data center in just 55 days.

In its second-quarter earnings call, Chief Executive Officer K.R. Sridhar noted that "over a dozen U.S. neoclouds, AI labs and colocation data center operators have validated and approved our power solutions."

Bloom's earnings have boomed, and demand is only increasing

In the second quarter, the company's revenue exceeded $1 billion for the first time. The company is experiencing accelerating data center deliveries, and as a result, management raised its full-year revenue projection to a range of $3.9 billion to $4.2 billion (a 100% increase year over year at the midpoint) and full-year non-GAAP (generally accepted accounting principles) operating income to a range of $800 million to $900 million.

BE Revenue (TTM) data by YCharts

Bloom's growth isn't slowing down, either. On June 30, Brookfield Asset Management expanded its strategic partnership with Bloom Energy. It increased its initial project financing framework from $5 billion to $25 billion, a stunning fivefold increase.

On July 20, Industrial Development Funding partnered with Oaktree, MUFG, and Morgan Stanley to announce a $1.7 billion project investment to support the deployment of Bloom's fuel cells to power Nebius' AI infrastructure build-out.

Is Bloom Energy stock a buy?

Bloom Energy recently introduced Power Connect, which reduces on-site power installation time by more than 40%. This builds on Bloom's speed-to-power advantage by moving complex electrical integration from the field to the factory floor.

Looking ahead, analysts covering Bloom Energy project its earnings per share (EPS) to rise to $2.67, a 251% increase from 2025's EPS of $0.76. Bloom Energy trades at about 94 times projected earnings for this year. But that valuation also assumes its staggering growth will continue, with analysts projecting 84% annual EPS growth in 2027 and another 60% in 2028.

Bloom Energy stock has surged in recent years and remains well-positioned to continue gaining in the years ahead. As long as hyperscalers continue to invest so much in building data centers, Bloom Energy should continue to ride these powerful tailwinds higher.

Courtney Carlsen has positions in Bloom Energy, Morgan Stanley, and Oracle. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, Everpure, Illumina, Oracle, and The Trade Desk. The Motley Fool has a disclosure policy.