Bloom Energy Stock (BE) Backed by Analysts on Fuel Cell Role in AI Data Centers

Bloom Energy Corporation (NYSE:BE) is one of the AI Stocks Making Headlines This Week. On September 16, Morgan Stanley analyst David Arcaro increased his price target on the stock to $85 from $44 while maintaining an Overweight rating.

The rating affirmation is driven by the growing potential in the AI data center power market. In the research note, analysts have highlighted Bloom’s recent agreement to supply fuel cells to Oracle’s AI data centers.

Oracle’s significant bookings reflect the surge in demand for computing capacity, which is turn intensifying power supply needs.

“Bloom has an attractive partner in Oracle, and the company is among the only players able to increase its manufacturing quickly.” -David Arcaro, analyst at Morgan Stanley

According to Arcaro, Bloom is now “favorably positioned for success in powering AI data centers” among extremely strong data center power demand. Moreover, tightening power supply means longer delays for grids and alternative approaches but Bloom stands out owing to its flexible manufacturing.

The fuel cell company boasts the potential to double capacity within six months and ship products on a short turnaround.

The analyst pointed out that the potential power shortfall exceeds 40 GW in the coming years, outstripping Bloom’s current 1 GW annual capacity. This signals immense opportunity for growth. Overall, Arcaro believes that Bloom has the potential to become “a much bigger player in the power landscape.”

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.

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