AI Data Center Trade Fuels Bloom Energy (BE) Rally - Is It Sustainable?

Bloom Energy Corporation (NYSE:BE) is one of the AI Stocks on Market Radar. On September 23, BofA Securities analyst Dimple Gosai raised the price target on the stock to $24.00 (from $21.00) while maintaining a Underperform rating.

According to the firm, Bloom Energy has secured remarkable wins such as those with American Electric (AEP) and Oracle (ORCL). These wins, along with other fast project deployments, has made it a standout beneficiary of the AI data center trade. The stock had a greater than 650% stock rally over the past year.

However, the firm believes that Bloom’s surge isn’t backed by fundamentals. Major wins secured by the company didn’t change the company’s guidance, and the Fremont’s 1GW facility is running at less than 50% utilization.

Moreover, supply chain checks point to revenue growth closer to the firm’s 2026 outlook which remain “well below” Street estimates for 2026-28.

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.

READ NEXT: 10 AI Stocks in Focus on Wall Street and 10 Must-Watch AI Stocks on Wall Street.

Disclosure: None.