JPMorgan Sees Upside in Bloom Energy (BE) Amid Growing AI Power Needs

Bloom Energy Corporation (NYSE:BE) is one of the AI Stocks Investors Are Watching Closely. On October 2^nd, JPMorgan maintained its “Overweight” rating and more than doubled the price target to $90 per share.

The firm said its standing by BE even as its stock trades at a significant premium on data center demand for its onsite power generation systems.

According to analyst Mark Strouse, investors are struggling with a lack of visibility into Bloom’s backlog considering data center customers don’t allow the company to disclose order details.

However, the firm believes that “positive catalysts remain on the horizon.” The company should log more bookings with existing customers such as AEP and Oracle and capture new opportunities.

Strouse said that Bloom’s factory utiliziation has stood at an estimated 35% to 40% of its one gigawatt capacity over the past year. However, it has been pricing in higher utilization levels.

“In short, we believe risks remain skewed to the upside if BE can secure further order activity,” he said.

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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