Is It Too Late to Buy Bloom Energy? My Honest Take.

Source Motley_fool

Key Points

  • Bloom Energy has grown immensely from sales of its energy servers to companies involved in building AI infrastructure.

  • The company had an outstanding second quarter, but almost three-quarters of its revenue growth was driven by one customer.

  • The stock can continue delivering gains, but investors shouldn't expect its extraordinary growth from the past to repeat itself.

  • 10 stocks we like better than Bloom Energy ›

Up over 200% since last October, and over 1,400% over the last five years, Bloom Energy (NYSE: BE) has been on an absolute tear. And it's not hard to see why. Bloom has become one of the most important energy companies to the tech industry, mainly because it has something AI companies desperately need: power, and fast.

Bloom's solid oxide fuel cells -- Bloom boxes, as they're sometimes called -- can generate electricity directly at data centers, which allows developers to sidestep the years-long wait for a connection to the grid. This "time to power" advantage has catapulted Bloom from a relatively obscure clean-energy upstart into one of Wall Street's hottest energy stocks.

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With such an enormous run behind it, however, the uncomfortable question emerges: Have Bloom's best market days come and gone, or is there still upside ahead?

How Bloom cemented its dominance in 2026

As mentioned, Bloom sells solid oxide fuel cells for on-site power generation. The company earns most of its revenue from selling and installing these systems, with maintenance providing a smaller stream of revenue.

Sales of Bloom's energy systems have been spectacular, and its second-quarter numbers show just how quickly demand has spiked. Product revenue in Q2 hit $935 million, up roughly 215% year over year, and total revenue surpassed $1 billion for the first time in company history.

Better yet, Bloom's operating expenses did not rise as drastically as revenue. In Q2 2025, for example, Bloom generated about $401 million in revenue while spending roughly $111 million on operating expenses. This year, Bloom generated more than $1 billion while operating expenses rose to about $173 million. That helped Bloom swing from a $3.5 million operating loss a year ago to a $182 million profit last quarter.

One slight wrinkle is that about 73% of Bloom's second-quarter revenue came from a single buyer. That's concerning because it means a large portion of Bloom's recent growth depended on one buyer rather than a broad mix. That doesn't take away from what was an otherwise outstanding quarter, but it could make Bloom's growth less durable if that customer's orders slow down.

Closeup of a Bloom energy server.

Image source: Bloom Energy.

Bloom has several projects in its back pocket, including partnerships with Equinix, Oracle, Nebius, and Brookfield Asset Management. But perhaps the most interesting is its relationship with miTAC Computing, which manufactures servers for AI workloads.

Bloom plans to deploy a "microgrid" at miTAC's manufacturing campus in Fremont, California. Bloom hasn't disclosed the project's size, but what fascinates me is the customer: miTAC isn't a data center. It basically makes equipment for data centers. This suggests that Bloom is trying to expand beyond data centers to encompass the broader AI-related supply chain, which could significantly broaden its market opportunity.

Is it too late to buy Bloom Energy stock?

I don't think it's too late to buy Bloom Energy stock. At the same time, if you're buying Bloom with the expectation that immense growth will come from data centers, you might be late to that particular story.

However, it doesn't mean that Bloom's momentum has hardened into stasis. Indeed, if the miTAC relationship tells us anything, it's that Bloom is already looking for ways to expand beyond data centers. Bloom investors may not see the same 15-fold gain the stock has seen over the last five years. But I think the stock still has a competitive edge and the potential to beat the market over the long term.

Should you buy stock in Bloom Energy right now?

Before you buy stock in Bloom Energy, consider this:

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Steven Porrello has positions in Bloom Energy. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, Equinix, and Oracle. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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