Bloom Energy stock has surged 1,470% over the past 12 months on strong AI data center power demand, but an author employs put options strategy to buy shares at a lower price.

Bloom Energy's fuel cells have become the primary power solution for data center developers, with major partnerships including Oracle's expansion to deploy up to 2.8 GW of fuel cell capacity and Brookfield Asset Management's $5 billion AI infrastructure partnership. The company expects to grow revenue by 80% this year.

The author writes put options (contracts giving the right to buy a stock at a set price) on Bloom Energy to potentially purchase shares nearly 50% below the current price while collecting income from the premium payment. If the stock price remains above the strike price at expiration, the author intends to write new options contracts to generate additional income.

Bloom Energy stock now trades at 22 times sales and 135 times forward earnings, which the author views as a rich valuation. AI data center power demand in the U.S. could surpass 100 gigawatts by 2035, triple last year's level of 31 GW, according to the article.