Bloom Energy vs. Palantir: Which "Story Stock" Actually Has More Room to Run?

Bloom Energy (NYSE: BE) and Palantir (NASDAQ: PLTR) are both "story stocks" with significant future growth baked into their current valuations. But their growth stories are also compelling. Bloom's solid oxide fuel cells (SOFCs) are providing cleaner energy for data centers, while more businesses and government agencies are using Palantir's AI services.

Over the past three years, shares of Bloom and Palantir have rallied 1,320% and 1,110%, respectively. But which of these "story stocks" actually has more room to run?

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The bull case for Bloom

Bloom's SOFCs can convert natural gas, propane, biogas, and pure hydrogen into electricity with an electrochemical process that doesn't require any combustion. They can be deployed rapidly, often in less than two months, and bypass traditional power grids.

That cleaner, faster approach to generating power made Bloom's SOFCs appealing to large tech companies, which needed to quickly expand their infrastructure to handle the surging power needs of the cloud infrastructure and AI markets. Bloom isn't the only SOFC producer, but it's the dominant player in stationary, multi-megawatt, utility-scale power.

Today, companies such as Oracle, CoreWeave, Nebius, and Equinix use Bloom's SOFCs in their data centers. Brookfield Asset Management (NYSE: BAM), one of the world's top asset managers, is funding the construction and deployment of its fuel cell systems through a strategic partnership.

Bloom's total backlog reached $20 billion at the end of 2025. That's nearly ten times the $2.02 billion in revenue it generated for the full year. From 2025 to 2028, analysts expect its revenue to grow at a 70% CAGR, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to increase at a 120% CAGR. It's also expected to turn profitable by generally accepted accounting principles (GAAP) in 2026.

The bull case for Palantir

Palantir's software helps its clients unify their siloed, disparate data on a single platform to make better-informed decisions. To do so, it aggregates information from a client's databases, supply chains, sensors, emails, documents, social media accounts, financial records, healthcare records, and other sources. It then uses its Ontology data model to translate all of that fragmented data into an easy-to-query stream of information for non-technical users.

Palantir's Gotham platform serves government clients, including many U.S. military and law enforcement agencies. Its Foundry platform serves commercial customers, including Apple, Amazon, and Walmart. It's also expanding its AI platform, which enables its clients to build custom AI apps.

Palantir's government business is booming as military conflicts in Ukraine and the Middle East drive the U.S. to ramp up its investments in AI-powered data gathering services. Its commercial business is also thriving as it gains more enterprise customers in the U.S. market.

From 2025 to 2028, analysts expect Palantir's revenue and adjusted EBITDA to grow at CAGRs of 58% and 72%, respectively. It's also been profitable by GAAP measures since 2023, and that consistent bottom-line growth led to its inclusion in the S&P 500 in 2024.

Which stock has more upside potential?

With an enterprise value of $59 billion, Bloom Energy trades at 14 times this year's sales and 66 times its adjusted EBITDA. Palantir, with an enterprise value of $406 billion, trades at 50 times this year's sales and 81 times its adjusted EBITDA.

Both of these companies are growing rapidly with plenty of irons in the fire. However, Bloom's lower valuation suggests it has more near-term upside potential than Palantir, which is generally better known to growth-oriented tech investors than Bloom.

I wouldn't rush to buy either of these stocks right now. But if I had to pick one over the other, I'd choose Bloom because it's growing faster, more attractively valued, and dominates an oft-overlooked niche of the AI infrastructure market that has plenty of room to expand.

Leo Sun has positions in Amazon and Apple. The Motley Fool has positions in and recommends Amazon, Apple, Bloom Energy, Brookfield Asset Management, Equinix, Oracle, Palantir Technologies, and Walmart. The Motley Fool has a disclosure policy.