MW Bloom Energy's AI bonanza leaves Wall Street with plenty of questions

By Claudia Assis

Bloom Energy's stock is surging toward a record close, but analysts wonder about economics and competition

Bloom Energy's stock was surging on Wednesday, but Wall Street remains of two minds about the alternative-energy company.

Bloom Energy Corp. is riding a wave of optimism about artificial intelligence and energy needs, but its latest financial snapshot did little to resolve Wall Street's divide over the alternative-energy company and its prospects.

While Bloom Energy's stock (BE) surged on Wednesday toward a record close, analysts had questions about the economics of the company's initiatives and wondered whether the stock's sixfold rise this year meant future upside would be more limited.

Bloom Energy, which reported quarterly earnings above market expectations, "is still in the very early stages of seeing broader adoption," RBC Capital Christopher Dendrinos said in a note Wednesday.

Dendrinos raised his price target on the stock to $143, from $123, saying that long-term upside opportunity for the stock "could be much greater with broader adoption" of the company's technologies. His new target implies just 3% upside to Wednesday's prices.

BofA Securities analyst Dimple Gosai said Bloom Energy was less sanguine. The company showed a "strong headline beat," he said. But the optimism is likely priced in amid consensus expectations for accelerating AI power demand.

The quarter did little "to resolve uncertainty around true project economics, cash conversion, and sustainability of Brookfield-driven volumes," Gosai added, referring to Bloom's $5 billion deal with Brookfield Asset Management around AI announced earlier this month.

The Brookfield partnership "aids as more of a financing bridge than astructural breakthrough," Gosai said in a note.

Analysts are divided on Bloom. Of the 27 analysts tracked by FactSet, 12 have buy ratings on the stock, while 12 have hold ratings and three rate the stock at sell.

On the one hand, revenue continues to grow, and margins and income are improving on manufacturing efficiencies and cost reductions, Jeff Osborne with TD Cowen said.

But there's also execution risk associated with manufacturing expansion, and the company offers "limited disclosure" on guidance and shipment data, Osborne said.

Moreover, competitive energy alternatives to power AI, such as gas turbines, are well established and more widely available, and may offer lower upfront costs, he said.

Bloom on Tuesday afternoon reported adjusted earnings of a 15 cents share on a revenue of $519 million, which was up 57% compared with the year-ago quarter. The analysts surveyed by FactSet expected adjusted EPS of 9 cents on revenue of $427 million.

The company's stock is up more than 525% this year, dwarfing S&P 500 index SPX gains of about 17% so far this year.

-Claudia Assis

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October 29, 2025 12:01 ET (16:01 GMT)

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