Bloom Energy surges on fuel cell deal with utility
Fuel cell maker and momentum stock favorite Bloom Energy ripped early Thursday, after American Electric Power said one of its subsidiaries would exercise an option — from a previous agreement — to buy additional Bloom products for a fuel cell power plant in an agreement worth $2.65 billion.
AEP also said it had signed a “20-year deal with an unnamed customer to supply the entire output from the fuel cell generation facility that will be located near Cheyenne, Wyoming.”
Analysts at Evercore ISI wrote:
“We view this as a meaningful positive for Bloom as it sheds light on the demand for its product and provides investors insight into the fact that the AEP contract will result in volumes well above the minimum commitment, which had previously been rather opaque.
Additionally, this should also provide confidence in Bloom’s customer diversification as many had typically tethered the company directly to Oracle, given the company’s announced collaboration with the company in July 2025.”
With Thursday morning’s surge, Bloom Energy is up more than 400% over the last 12 months, in a rally driven by investor excitement about surging power demand related to AI data centers. While the company has been profitable — on an adjusted basis — over its last four quarters, it’s also highly valued, with a price-to-forward earnings multiple of more than 100x.
Analysts at Evercore ISI wrote:
“We view this as a meaningful positive for Bloom as it sheds light on the demand for its product and provides investors insight into the fact that the AEP contract will result in volumes well above the minimum commitment, which had previously been rather opaque.
Additionally, this should also provide confidence in Bloom’s customer diversification as many had typically tethered the company directly to Oracle, given the company’s announced collaboration with the company in July 2025.”
With Thursday morning’s surge, Bloom Energy is up more than 400% over the last 12 months, in a rally driven by investor excitement about surging power demand related to AI data centers. While the company has been profitable — on an adjusted basis — over its last four quarters, it’s also highly valued, with a price-to-forward earnings multiple of more than 100x.
