Bloom Energy vs. FuelCell Energy: Which Data Center Fuel Cell Maker Is the Better Buy Right Now?
Key Points
Bloom Energy has emerged as a preferred provider of on-site electricity for hyperscalers.
Bloom's stock has exploded amid incredible demand for AI power.
FuelCell Energy's total backlog has grown to $3.6 billion as of its fiscal third-quarter report.
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Winning power contracts for new artificial intelligence data centers has become one of the most important races in modern history. As grids become strained under the weight of AI's immense electricity needs, companies such as Bloom Energy (NYSE: BE) and FuelCell Energy (NASDAQ: FCEL) are two prominent names helping hyperscalers meet those demands. Which stock is the better choice right now? The answer could come down to your risk profile and what you're willing to pay.
Bloom is the go-to solution
Hyperscalers can't afford to wait years and years for new grid connections, so they are turning to alternatives, and that's where Bloom has blossomed as a go-to favorite for the AI industry. Bloom can deploy on-site systems in about three months, and that speed has translated into massive sales.
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Bloom's second-quarter 2026 revenue reached $1.065 billion, a 166% jump from last year. Gross margin exceeded 34%, and the company's product revenue climbed 215% as orders continued to come in. Bloom's backlog is now approaching $20 billion. Deals and partnerships with AI darlings Oracle, Brookfield Asset Management, and Nebius Group led management to raise its full-year revenue guidance once again to $3.4 billion to $3.8 billion.
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Of course, the excitement has led to an incredible run for the stock, which has risen approximately 225% year to date. This means Bloom is trading at an incredible premium and is priced for perfection. Any delays or problems in execution, or a slowdown in demand, could spell trouble for shareholders.
FuelCell Energy could be next
FuelCell Energy is a far different story than Bloom. Unfortunately, the company's fiscal third-quarter results showed a 29% decline in revenue, while its gross loss widened to $24.5 million. This was all largely due to the completion of deliveries in South Korea. Shares fell precipitously on the earnings news.
There's hope for FuelCell, though. The company received its first order for data center applications, and the total backlog grew to $3.6 billion. A stock sale helped raise an additional $300 million for FuelCell, bringing the company's cash position to over $737 million. The Connecticut-based business is looking to expand its manufacturing capacity to 500 megawatts by 2028. Management anticipates positive adjusted EBITDA by the end of fiscal 2027.
The winner depends on the investor
Bloom is the winner of this battle today. The company is financially strong: It is profitable, generates substantial cash, and is a proven entity among AI hyperscalers. There's still room for growth with Bloom, but investors will need to pay a premium for it.
FuelCell, on the other hand, is a much more speculative play, but offers investors a far less expensive entry point. There's a lot of execution risk with FuelCell, but if the company can continue to collect orders for the backlog while meeting stated milestones, the upside potential looks massive. Current investors have been waiting years for the company's turnaround to finally take hold, and it looks as if they'll be waiting a bit longer.
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Catie Hogan has positions in FuelCell Energy and Oracle. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, and Oracle. The Motley Fool has a disclosure policy.
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