Bloom Energy Has More Room to Run Amid the AI Supercycle, and Its S&P 500 Inclusion Could Add to the Momentum

Bloom Energy's (NYSE: BE) recent rally got another boost Tuesday after it was announced that the renewable energy company would be added to the S&P 500 on Sept 21. That bounce was part of an extended surge that has tripled the stock's price year to date, but given the state of the AI supercycle, it's possible that its upward run is not yet near its conclusion.

With more people hearing about Bloom Energy thanks to its pending S&P 500 inclusion, here's what investors should know.

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Energy supplies are a major constraint in the AI boom

Tech companies are scrambling to build data centers to support the world's AI ambitions, but the technology doesn't just rely on chips and servers. Access to large amounts of electricity is a major bottleneck that is helping dictate how quickly AI infrastructure can scale, and Bloom Energy has been offering some of the largest companies another way to address this constraint.

Bloom Energy's solid oxide fuel cells have become a standard option for supplying on-site power to AI data centers.

As CEO KR Sridhar said in Bloom's Q2 earnings report, "Today, all the major US hyperscalers and over a dozen US neoclouds, AI labs, and colocation data center operators have validated and approved our power solutions for their AI factories."

This type of positioning sets Bloom Energy up for accelerating revenue growth as more data centers are built. The results are already showing up on the top line. In Q2, Bloom Energy delivered 165.5% year-over-year revenue growth, with its product segment more than tripling.

That successful quarter also prompted management to boost its full-year revenue guidance range to $3.9 billion to $4.2 billion.

Tech companies are buying AI components years in advance

The bullish thesis for Bloom Energy now depends on the AI build-out. If capital expenditures continue to rise, more of big tech's spending will flow toward Bloom Energy's power solutions. Luckily for its shareholders, the market has received a barrage of news recently that confirms the AI supercycle is strong and continues to gain momentum.

Samsung (OTC: SSNLF) has locked in sales contracts for 70% of the memory chips it will produce through 2031, while custom chip designer Broadcom (NASDAQ: AVGO) offered strong guidance for both its fiscal 2027 and fiscal 2028 while only halfway through its fiscal 2026.

Multiyear deals have rapidly become common between chipmakers and the tech giants buying their wares, which offers them meaningful revenue visibility. All of those chips and the servers they'll be installed in will have to connect to power sources, and as Bloom Energy is establishing itself as one of the top choices to provide on-site electricity generation, its revenues should continue to grow at a strong pace.

Notably, Bloom Energy's revenue grew by 42% sequentially in the second quarter to $1.065 billion. This type of growth has led management to raise its guidance substantially in consecutive quarters.

In the first quarter, Bloom Energy raised its 2026 guidance from 60% revenue growth at the midpoint to 80% at the midpoint. It raised guidance again in Q2 to a level that forecasts total sales will more than double year over year.

If tech companies continue to sign extended multiyear deals for their key AI infrastructure components, it will offer more clarity that the data center build-out will keep rolling for some time. Given the certainty that all of those data centers will need power, some of the capital spending that ensues should flow to Bloom Energy. That development could fuel a prolonged rally for the stock.

Marc Guberti has positions in Broadcom. The Motley Fool has positions in and recommends Bloom Energy and Broadcom. The Motley Fool has a disclosure policy.