Bloom Energy Shares Navigate a Sharp Pullback After Stellar Run

Bloom Energy capped off 2025 with a staggering 298% annual gain, but the high-flying stock has since experienced a significant cooling-off period. Having reached an all-time peak near $148 in November, the equity now trades approximately 30% below that high. While market experts are raising their revenue forecasts, a degree of skepticism persists regarding the company's current valuation.

A key element of Bloom Energy's strategy is its deliberate positioning to benefit from the expansion of AI infrastructure. The company solidified this approach through a $5 billion strategic partnership with Brookfield Asset Management. This agreement establishes Bloom as the preferred power provider for Brookfield's global portfolio of AI-related assets. A critical component of the deal is Brookfield's commitment to use its balance sheet to finance Bloom's projects, a model designed to accelerate scaling.

This move builds upon earlier momentum, including a supply agreement secured with Oracle in July to provide fuel cells for data centers.

Rising Revenue Forecasts Amid Capacity Expansion

The optimism from analysts is primarily reflected in upward revisions to sales projections, largely driven by the burgeoning demand from data centers. Clear Street, for instance, increased its price target from $50 to $58, though it maintained a Hold rating on the shares. The investment bank raised its 2026 revenue forecast by 2% and boosted its 2027 estimate by 9% to $3.33 billion.

This confidence is supported by concrete operational growth and expansion plans:

Should investors sell immediately? Or is it worth buying Bloom Energy?

• Third-quarter revenue hit $519 million, representing a year-over-year increase of 57.1%.
• The company reported a positive non-GAAP EPS of $0.15.
• Production capacity is slated to double to 2 gigawatts by December 2026.
• Bloom's market capitalization stands at approximately $20.5 billion.

Valuation Concerns and Analyst Caution

Despite these strong fundamental indicators, the stock's valuation remains a point of contention. Multiple analysts currently recommend only holding the shares. Daiwa Capital Markets initiated coverage in early December with a Hold rating and a $98 price target. The divergent assessments highlight a central debate: has the stock's valuation become disconnected from its operational outlook?

Metrics such as a price-to-earnings ratio exceeding 1,000 and a price-to-sales ratio of 8 imply substantial growth expectations are already priced in. The company's return on equity is currently 5.22%.

Intensifying Competitive Landscape

Bloom Energy operates in an increasingly competitive alternative energy sector. Rivals like Ballard Power Systems and FuelCell Energy are advancing their own fuel cell technologies. Meanwhile, companies such as NuScale Power and Oklo are promoting small modular nuclear reactors as a potential power source for data centers. Bloom's solid oxide fuel cells are marketed on their reliability and low emissions—a potential advantage in regions with constrained power grids.

Market researchers anticipate significant growth for Bloom in 2026, with EPS expected to surge by 79% alongside a 38% increase in revenue. Whether the stock regains its upward trajectory following the recent correction will likely depend on the speed of the company's production ramp-up and the continued strength of its data center project pipeline.