Bloom Energy (BE) Stock Trades Down, Here Is Why

What Happened?

Shares of electricity generation and hydrogen production company Bloom Energy (NYSE:BE) fell 0.2% in the morning session after Evercore ISI Group initiated coverage on the company with an "Outperform" rating and set a price target of $100. 

The new rating from the financial firm pointed to Bloom Energy's strong position to meet growing power demands with its versatile and efficient fuel-agnostic servers. The analyst noted the company gained significant traction with utilities and leading AI companies, which are key to its growth. This positive view echoed recent comments from JPMorgan, which maintained its “Overweight” rating on the stock and raised its price target to $90. JPMorgan also highlighted the rising demand for onsite power from data centers as a key factor, suggesting that risks were skewed to the upside if Bloom secured more orders.

After the initial drop the shares shed some of the losses and rose to $86.42, down 0.7% from previous close.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Bloom Energy? Access our full analysis report here.

What Is The Market Telling Us

Bloom Energy’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock dropped 4.7% on the news that an analyst from Mizuho downgraded the stock due to valuation concerns following the stock's significant rally. 

Mizuho lowered its rating on Bloom Energy to 'Neutral' from 'Outperform', pointing to the stock's more than 300% surge year-to-date. The firm also expressed concerns that the company's internal production capacity could not keep pace with the soaring demand from AI data center developers. 

Despite the downgrade, Mizuho increased its price target on the stock to $79 from $48, citing improved visibility for demand growth. 

Bloom Energy is up 270% since the beginning of the year, and at $86.42 per share, it is trading close to its 52-week high of $90.29 from October 2025. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $3,995.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.