Bloom Energy stock up 194% this year as AI data centers clamor for power

What happened

Bloom Energy, a fuel cell manufacturer, has seen its stock surge about 194% since the start of the year. The company's fuel cell systems generate electricity on-site for data centers without relying on traditional transmission lines, and its first-quarter product revenue tripled year over year.

Why it matters

AI data centers face a critical energy bottleneck. The U.S. could face a 19-gigawatt power shortfall by 2028, and data centers are expected to account for nearly half of U.S. electricity demand growth through 2030. Bloom's ability to deploy servers within three months—compared to several years for traditional grid expansion—positions it to address this shortage at precisely the moment when tech companies need it most.

What to watch

Bloom currently trades at a premium and is not suited for value investors. However, the company's total revenue is expected to continue climbing at an impressive pace, and long-term investors who believe AI's power needs are only beginning may still find the opportunity attractive.