Bloom Energy (BE) Rides AI Data Center Boom but Faces Cash Burn Risks

Bloom Energy Corporation (NYSE:BE) is one of the AI Stocks Analysts Are Watching Closely. On August 1^st, BMO Capital analyst Ameet Thakkar raised the price target on the stock to $33.00 (from $18.00) while maintaining a “Market Perform” rating.

Bloom Energy reported its second quarter 2025 financial results on July 31^st, which was the third straight quarter of quarterly record revenue and profits for the company. The firm beat revenue estimates ($401.2M versus the consensus estimate of $376.24M).

“2Q results came in ahead of our estimates. Importantly, service gross margins improved further, which given large service backlog is positive as margins here have historically been weak. Order momentum within data center appears strong as evidenced by recent Oracle announcement and potential role in Crusoe/Tallgrass data center project in WY driving shares +39% since 7/23/25 announcement."

"That said, 2Q and YTD cash burn again significantly negative and with BE shares trading at 37x and 22x our 2026 and 2027 EBITDA estimate, we remain Market Perform. Raising target to $33.”

Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers.

While we acknowledge the potential of BE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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