Bloom Energy Just Joined the S&P 500. Here's What History Says Happens Next.

Source The Motley Fool

Key Points

  • Bloom was added to the S&P 500 in September.

  • It still has plenty of room to grow as the AI market expands.

  • Motley Fool Issues Rare "Total Conviction" Buy Alert ›

Bloom Energy (NYSE: BE), a developer of solid oxide fuel cells (SOFCs), has rallied 1,880% over the past two years. Those massive gains -- along with its rising profits -- led to its inclusion in the S&P 500 (SNPINDEX: ^GSPC) on Sept. 21, 2026.

Could that inclusion pave the way toward even bigger gains for Bloom Energy over the next few years? Let's see what history suggests could happen after it joins the S&P 500.

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Electric transmission towers and lines.

Image source: Getty Images.

How fast is Bloom Energy growing?

Bloom's SOFCs can convert natural gas, biogas, propane, and hydrogen into electricity without any combustion. These clean systems can be deployed quickly, often in less than two months, and bypass traditional utilities that often require years to set up new connections.

The rapid growth of the AI market has driven many big data center operators -- including Oracle, CoreWeave, Nebius, and Equinix -- to deploy Bloom's SOFC systems to expand their cloud infrastructure.

Its new Power Connect System, which reduces its on-site installation time by over 40%, should further accelerate its deployments and widen its moat against other SOFC producers. Brookfield Asset Management, one of the world's largest asset managers, also funds the production and deployment of its systems through a $25 billion partnership.

From 2023 to 2025, Bloom's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew at CAGRs of 23% and 82%, respectively. At the end of 2025, its backlog hit $20 billion -- nearly ten times the revenue it had generated for the full year.

Why could Bloom's inclusion in the S&P 500 drive it higher?

Bloom's inclusion in the S&P 500 marks a major step in its transformation from a niche green energy play into a high-growth AI infrastructure stock. By achieving the S&P 500's requirement of four consecutive quarters of profitability on a generally accepted accounting principles (GAAP) basis, Bloom also counters the bearish notion that its business model is unsustainable.

In the past, many investors likely overlooked Bloom because it wasn't part of a major index. However, its inclusion in the S&P 500 automatically makes it part of any index fund or ETF that passively tracks the index. Therefore, we should see Bloom's trading volume rise significantly as those investors passively purchase its stock. That's why most stocks rise (at least in the short term) after they're added to the S&P 500. For example, Palantir (NASDAQ: PLTR) has rallied nearly 400% since its inclusion in Sept. 2024.

From 2025 to 2028, analysts expect Bloom's revenue and adjusted EBITDA to grow at CAGRs of 72% and 126%, respectively, as the AI infrastructure boom continues. With an enterprise value of $66 billion, it isn't expensive at 34 times next year's adjusted EBITDA -- so it could have a lot more upside potential over the next few years.

Should you buy stock in Bloom Energy right now?

Before you buy stock in Bloom Energy, consider this:

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*Stock Advisor returns as of October 30, 2026.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, Equinix, Oracle, and Palantir Technologies. The Motley Fool has a disclosure policy.

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