Fuel cell manufacturer Bloom Energy soared 20% in after-hours trading Tuesday, driven by better-than-expected Q3 adjusted earnings and an upbeat outlook for 2025. The stock has surged over 350% year-to-date, making it one of the top performers in 2025 as investors bet on its role in powering AI data centers.

Bloom Energy reported Q3 adjusted EPS of $0.15, beating the $0.10 consensus, while revenue reached $519 million, far exceeding the $428 million estimate. However, under GAAP accounting, the company posted a $0.10 per-share loss due to employee stock compensation costs.

CEO KR Sridhar stated during the earnings call, "Based on current trends, we expect 2025 financial metrics to outperform our prior annual guidance."

The company is expanding production capacity, targeting 2 gigawatts of annual fuel cell output by late 2026—enough to quadruple revenue from 2025 levels. Once a volatile clean-energy play, Bloom has become an AI darling as its off-grid deployable fuel cells are seen as a solution to surging power demands from data centers. Partnerships with Oracle, Brookfield Asset Management, and AEP underscore this pivot.

Columbia Threadneedle portfolio manager Paul Wick noted, "We face severe power shortages. Gas turbines are sold out until 2029, and nuclear takes years to build. Bloom’s modular fuel cells can deploy in three months."

While bulls argue Bloom could capture share from the $100 billion gas turbine market, its stock trades at 110x 2026 EPS estimates—a premium to established AI players like Nvidia. With 16% of shares sold short, the stock remains prone to volatility.