Why Did Bloom Energy Stock Rocket Beyond 50% in October?

Bloom Energy (NYSE: BE) hit it out of the park in October, delivering on every metric that matters and forging a multibillion-dollar partnership in the booming artificial intelligence (AI) data center market. That sent the hydrogen stock soaring, and it was trading 57% higher through the month as of this writing.

Here's all you need to know about Bloom Energy and the powerful tailwinds that are sending the stock higher and higher.

Image source: Getty Images.

3 reasons October was a magnificent month for Bloom Energy stock

October was a significant month for Bloom Energy on several big counts, and there were three massive catalysts that sent the stock zooming.

1. One megadeal, many opportunities ahead

Bloom Energy builds hydrogen fuel cell systems that can generate steady, uninterrupted, and clean energy power onsite to meet the needs of some of the largest power-consuming industries, such as utilities and semiconductor manufacturing.

Bloom Energy's fuel cell systems can be deployed within months without legacy grids, which is one of the biggest factors behind the company's expanding client list, which now includes some of the world's largest corporations.

In October, Bloom Energy forged a $5 billion partnership with global alternative asset manager Brookfield Asset Management (NYSE: BAM) to jointly build AI factories powered by Bloom Energy's fuel cell technology.

With over $1 trillion in assets under management, Brookfield Asset Management is one the largest asset managers in the world. Brookfield's choice to partner with Bloom Energy is, therefore, a strong endorsement of its hydrogen fuel cell technology and signals the massive growth potential ahead for the company.

2. Smash-hit numbers, doubling capacity

Bloom Energy's third-quarter numbers also came out in October, and they hugely impressed the markets. The company delivered its fourth straight quarter of record revenues, with Q3 revenue soaring 57% year over year. Its gross margin jumped from 23.8% to 29.2% year over year, and it turned an operating profit of $7.8 million in the quarter against an operating loss of $9.7 million in Q3 2024.

Bloom Energy also generated nearly $20 million in operating cash flow versus a negative operating cash flow of $69 million in the year-ago quarter.

If those smash-hit numbers aren't good enough, Bloom Energy confirmed that it is doubling its manufacturing capacity to two gigawatts by the end of 2026. That could potentially support 4 times its 2025 revenue.

3. Analyst upgrades pouring in

Analyst upgrades are pouring in for Bloom Energy stock as the company continues to crush growth expectations and seal big contracts and collaborations. Some of the most notable upward price target revisions on the hydrogen stock are:

• Susquehanna: $157 per share from $105 a share.
• HSBC: $150 per share from $100 apiece.
• J.P. Morgan: $129 per share from $90 a share.
• BTIG: $145 per share from $80 per share.

Bloom Energy stock hit a 52-week high of $144.20 per share on Oct. 29.

Why Bloom Energy stock will not stop

There's no denying the explosive growth powering Bloom Energy and its stock price.

Its Brookfield partnership, in particular, reflects its growth runway because AI and data centers are where all the action is right now. Trillions of dollars are pouring into data center projects, and they're expected to send demand for electricity soaring. A recent study by the National Electrical Manufacturers Association foresees a 50% surge in demand for electricity in the U.S. by 2050.

Bloom Energy's client list already includes some of the largest global names across diverse industries such as technology, cloud services, consumer retail, telecom, food and beverage, manufacturing, biotech, and pharma.

I believe Bloom Energy's ability to secure large data-center customers will be its biggest growth driver in the coming years. Bloom Energy stock may have soared nearly 300% in just three months, but even this run-up could seem modest if the company continues to land big clients and expand its revenue and profits.

JPMorgan Chase is an advertising partner of Motley Fool Money. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Asset Management and JPMorgan Chase. The Motley Fool has a disclosure policy.