What Happened?
Shares of electricity generation and hydrogen production company Bloom Energy (NYSE: BE) jumped 5.5% in the afternoon session after an analyst at BTIG significantly raised the company's price target, pointing to soaring power demand from the artificial intelligence (AI) sector.
BTIG maintained its Buy rating on Bloom Energy while lifting its price target to $80 from $42. The firm highlighted that the rapid buildout of AI and high-performance computing (HPC) data centers is straining U.S. power supply chains, extending lead times for traditional equipment by 2-3 years. This creates a significant opportunity for Bloom's fuel cells, which can be deployed rapidly to meet urgent power needs. This bullish sentiment echoes recent upgrades from other Wall Street analysts. Morgan Stanley recently increased its target to $85, citing a "massive inflection in demand" following Bloom's deal to supply on-site power for Oracle's AI data centers. To capitalize on this demand, Bloom is expanding its Fremont facility to increase production capacity. While the stock has rallied on the AI hype, some analysts remain cautious, pointing to the company's stretched valuation.
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What Is The Market Telling Us
Bloom Energy’s shares are extremely volatile and have had 68 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 3% on the news that a key inflation data aligned with forecasts, bolstering hopes for continued interest rate cuts from the Federal Reserve.
The Personal Consumption Expenditures (PCE) price index, the central bank's preferred gauge of inflation, showed a slight year-over-year increase in August but did not surprise economists. This report was met with relief on Wall Street, as it suggests inflationary pressures remain contained, giving the Federal Reserve more leeway to continue its monetary easing policy. Investors interpreted the news as a positive sign that the Fed can support the economy without risking runaway inflation. The positive sentiment helped the major indices claw back some of the losses from a recent three-day slide, with stocks rising across various sectors.
Bloom Energy is up 217% since the beginning of the year, but at $73.97 per share, it is still trading 14.3% below its 52-week high of $86.27 from September 2025. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $4,382.
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