Why Bloom Energy Stock Crashed More Than 25% Today

Shares of Bloom Energy (NYSE: BE) plunged today, crashing as much as 28.6% through noon ET Monday.

Ironically, an analyst just upgraded the green hydrogen stock with a price target that would mean a near-11% upside from Friday's closing price. But this morning's crash alone means the analyst's price target now represents a staggering 50% potential upside in Bloom Energy stock as its current price, as of this writing.

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Analyst favors Bloom Energy stock...

Piper Sandler analyst Kashy Harrison upped Bloom Energy stock's price target to $33 per share from $30 a share.

In a recent report from Bloom Energy, the company predicted that 55 gigawatts (GW) of artificial intelligence (AI) data center capacity could come online in the U.S. alone over the next five years, opening up big opportunities for Bloom Energy, which uses solid oxide fuel cells to build a modular power-generation platform that can provide constant on-site power. Harrison sees merit in Bloom Energy's prediction and believes the company is "well positioned" to outperform in 2025, driven by data center power demand, among other things.

Harrison also believes Wall Street's conservative outlook on Bloom Energy means management could even revise its guidance for the company over time.

So why is Bloom Energy crashing today? A rival stock just got a ratings downgrade, uncertainty for clean energy companies under President Donald Trump looms large, and any company that has any relation with AI has seen its stock plunge today.

...but investors are scared

Seaport Global Securities analyst Tom Curran downgraded Plug Power (NASDAQ: PLUG) stock's rating to a sell, with a price target of only $1 per share, translating into a more than 50% downside from the stock's Friday closing price. Although Curran is worried about Plug Power's business strategy, the analyst also cited several macro factors behind the ratings downgrade, including Trump's freeze on the disbursal of funds awarded by the Biden administration for the green hydrogen industry.

Meanwhile, major U.S. stock market indexes plunged today after Chinese AI start-up DeepSeek's advanced yet far cheaper AI model rattled U.S. tech giants that have been spending billions of dollars on AI data centers. Bloom Energy stock couldn't have escaped the market rout today, since AI data centers in the U.S. also happens to be the most important growth market for the company.

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.