2 Things Every Bloom Energy Investor Needs to Know

Bloom Energy (NYSE: BE) has never had it so good. Demand for the company's hydrogen fuel cell power systems is so strong that revenues are reaching record highs, and the company is doubling its production capacity. Bloom Energy has also recently signed a game-changing, multibillion-dollar partnership.

With so much happening at the company, Bloom Energy stock went parabolic in 2025, rising over 400% at one point. It has, however, corrected in recent weeks and fallen nearly 35% from its 52-week high, as of this writing. Is this an opportunity to buy the hydrogen stock before 2025 ends? Here are two things you must know.

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A proven technology, enviable clientele

Bloom Energy is on a bold mission to make "clean, reliable energy affordable for everyone in the world." It uses solid oxide fuel cells to convert fuels such as natural gas and hydrogen into electricity. The fuel cells are stacked into modules, several of which can then be combined to build energy servers that can provide clean, stable, and round-the-clock power onsite.

So far, Bloom Energy has deployed over 1.5 gigawatts of low-carbon power across nearly 1,200 sites worldwide. That is enough to power 1 million average U.S. homes. Bloom Energy's clientele includes some of the world's largest companies, such as Oracle, Amazon's Amazon Web Services (AWS), Walmart, and FedEx.

Most importantly, unlike rival Plug Power (NASDAQ: PLUG), which is struggling to grow revenues, has yet to turn a profit, and recently suspended a major green hydrogen production expansion program because of a cash crunch, Bloom Energy's revenue has more than doubled in five years. It also recently achieved its first operating profit and is free-cash-flow-positive.

In its latest quarter, Bloom Energy's revenue jumped 57% year over year, and gross margin improved substantially from 23.8% to 29.2%.

In short, Bloom Energy has a proven technology that is already profitable and in high demand.

A once-in-a-generation opportunity

Bloom Energy's CEO, KR Sridhar, believes the company is "at the center of a once-in-a-generation opportunity to redefine how power is generated and delivered." There's some merit to the statement.

Artificial intelligence (AI) data centers are the biggest growth opportunity for Bloom Energy as they're massive power guzzlers, requiring continuous, uninterrupted power to keep their servers and cooling systems operational. With cloud computing giants like Amazon AWS investing billions of dollars in AI data centers, power demand is exceeding estimates. BloombergNEF recently upgraded its data center power demand forecast to 106 gigawatts (GW) by 2035, up 36% from its earlier forecast issued just seven months ago.

Bloom Energy is sitting squarely atop the power boom. In October, it signed a $5 billion partnership with Brookfield Asset Management, one of the world's largest alternative asset managing companies. The two companies will build AI factories, powered by Bloom Energy's hydrogen fuel-cell technology.

This partnership is just a reflection of the opportunities ahead for Bloom Energy and the potential upside for its stock price.

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Brookfield Asset Management, Oracle, and Walmart. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.