Bloom Energy Shares Signal Recovery Amid AI Infrastructure Demand

Bloom Energy's stock posted significant gains on Friday, advancing approximately 8.9% to close at $94.58. This move suggests a potential rebound for the fuel cell specialist following a steep correction in December, fueled by a renewed investor focus on AI infrastructure assets and validation from notable new market entrants.

The company's recovery is supported by strong underlying business performance. For the third quarter, Bloom Energy reported revenue of $519.1 million, a 57.1% year-over-year increase that substantially exceeded analyst expectations of $425.2 million. Earnings per share came in at $0.15, also beating the consensus estimate of $0.08.

External developments are providing additional momentum. On January 2, former Google CEO Eric Schmidt announced the launch of Bolt Data & Energy, a venture aiming to build off-grid power plants specifically for artificial intelligence data centers. Bolt's initial focus on natural gas mirrors the core business model of Bloom Energy. Schmidt's target of 10 gigawatts of capacity highlights the enormous energy requirements of hyperscalers like Microsoft and OpenAI.

Concurrently, a fresh market report forecasts robust expansion for the Solid Oxide Fuel Cell (SOFC) sector. The market is projected to grow from $3.2 billion in 2025 to $9.6 billion by 2030, representing a compound annual growth rate of 24.4%. Bloom Energy is identified within the report as a leading industry provider.

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

Navigating Extreme Volatility

The current uptick must be viewed within a context of remarkable share price volatility. Between July and November 2025, the equity soared by 560%, driven primarily by the announcement of a $5 billion strategic partnership with Brookfield Asset Management. A sharp reversal followed in December, with the stock losing nearly half its value as investors took profits and growing concerns about a potential "AI bubble"—partly triggered by a cautious outlook from Oracle—weighed on sentiment.

Valuation remains a point of debate among market observers. Several analysts view the shares as ambitiously priced, trading at multiples that in some cases exceed 100. The average price target currently sits near $93.77, a level the stock has now reached.

Critical Execution Ahead

The coming months will be decisive for Bloom Energy. The key challenge is converting its substantial project pipeline into recurring revenue streams. Successful execution of the Brookfield partnership is crucial, as is the stability of the 30% Investment Tax Credit (ITC), a critical component for the economic viability of its fuel cell projects. From a technical analysis perspective, maintaining a price above the $90 level is seen as important to confirm the December correction has concluded.