FuelCell Energy Is Up 80% in April. Should You Buy Now?
Key Points
Its business pipeline has grown 275% as of its most recent quarter, but the company is still not profitable.
The stock is riding a renewed wave of investor interest in its proprietary technology in the hydrogen sector.
- 10 stocks we like better than FuelCell Energy ›
FuelCell Energy (NASDAQ: FCEL) has been one of the month's hottest stocks, surging approximately 80% in April. While the immense power needs of AI data centers are dominating energy headlines, FuelCell's recent introduction of a new power block is turning heads as one viable solution.
In late March, FuelCell introduced a scalable 12.5-megawatt (MW) power block that can provide continuous, on-site power for data centers. This is an important piece of technology, as grid constraints are holding back the build-out of AI infrastructure. FuelCell also reported a 275% increase in its business development pipeline since February 2025, largely related to data center demand.
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Because of this, FuelCell has plans to triple manufacturing capacity. With over $1 billion in its backlog, there are plenty of bullish signals for FuelCell right now, and investors are taking notice.
There are still plenty of risks, though. FuelCell is not yet profitable and burns substantial cash. While the growing revenue is promising, to scale manufacturing and convert its backlog will require even more spending. There is a high level of execution risk.
In the first quarter of its fiscal 2026, FuelCell reported revenue growth of 61%, but gross losses also increased 13%. FuelCell is doing the right thing by leaning into AI infrastructure to scale its business. Still, investors should realize there will be significant volatility and that patience will be required to see this through. The stock is best suited for those with a high risk tolerance and a long time horizon.
Should you buy stock in FuelCell Energy right now?
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Catie Hogan has positions in FuelCell Energy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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