Why Bloom Energy Stock Skyrocketed 109% in April

Shares of Bloom Energy (NYSE: BE) rocketed a jaw-dropping 109.1% in April. It was a monster month for the advanced fuel cell systems maker. Bloom Energy expanded a key partnership and reported robust first-quarter financial results.

Here's a closer look at the two catalysts that fueled the epic surge in the hydrogen stock last month.

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Expanding a key strategic partnership

Bloom Energy has formed several strategic partnerships over the past year to accelerate the build-out of AI infrastructure by deploying more of its fuel cell systems in data centers. The company expanded its strategic partnership with tech giant Oracle (NYSE: ORCL) last month to support the rapid build-out of its AI and cloud computing infrastructure. Oracle now plans to obtain up to 2.8 gigawatts (GW) of Bloom Energy's fuel cell systems. Oracle has already contracted for an initial 1.2 GW of capacity, which it expects to deploy over the next year.

Oracle is expanding its partnership because Bloom's systems provide the reliable power it needs to support AI workloads. Bloom's systems also deploy quickly. The company delivered a fully operational fuel cell system to Oracle in just 55 days last year, more than a month ahead of the anticipated 90-day schedule. The fuel cell systems will enable Oracle to accelerate the development of cutting-edge cloud and AI infrastructure. Securing power has been a major bottleneck for developing AI data centers because traditional electricity grids are struggling to handle the high loads of these power-hungry facilities.

Delivering robust first-quarter results

Bloom Energy also reported robust first-quarter financial results last month. The fuel cell maker generated $751.1 million in revenue, a 130.4% increase from the first quarter of last year. Product revenue rocketed 208.4% to $653.3 million. Meanwhile, the company posted $72.2 million of operating income, a $91.3 million year-over-year increase. Bloom Energy also generated $73.6 million of cash flow from operating activities, an increase of $184.3 million.

Founder and CEO KR Sridhar proclaimed in the first-quarter earnings press release: "We at Bloom are ushering in the era of digital power for the digital age. Bloom is rapidly becoming the standard and 'go-to choice' for on-site power." That's evident from its expanded relationship with Oracle and last year's $5 billion strategic AI partnership with Brookfield Asset Management, which made it the preferred on-site power provider for Brookfield's AI factories (specialized AI data centers).

Robust demand for Bloom Energy's advanced fuel cells drove the company to boost its full-year outlook. Bloom Energy now expects to generate between $3.4 billion and $3.8 billion of revenue this year, up 80% year-over-year at the midpoint. That's an acceleration from its prior guidance of 60% revenue growth this year.

Is Bloom Energy stock still a buy after its epic surge?

Shares of Bloom Energy have skyrocketed by over 1,600% in the past year, fueled by accelerating demand for its advanced fuel cells. It has a massive market opportunity with over 100 GW of data center developments expected in the U.S. alone through 2035. However, with an $80 billion market cap, Bloom trades at a lofty valuation at more than 20 times its revenue. Given that, investors might want to wait for a pullback before buying shares of the fast-growing power solutions provider.

Matt DiLallo has positions in Brookfield Asset Management. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, and Oracle. The Motley Fool has a disclosure policy.