Bloom Energy Corporation (BE) Surged Following Strong Performance

ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter continued the market rally in May and June following waning policy uncertainty, a Fed rate cut, and animal spirits fueled by retail enthusiasm for high-growth potential markets, resulting in another double-digit gain. However, the strategy underperformed the benchmark, the Russell 2000 Growth Index, which gained 12.2%. The smallest market caps, the lowest returns on equity, and the highest beta names led the underperformance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, ClearBridge Small Cap Growth Strategy highlighted stocks such as Bloom Energy Corporation (NYSE:BE). Bloom Energy Corporation (NYSE:BE) engages in the design, manufacture, and installation of solid-oxide fuel cell systems for on-site power generation. The one-month return of Bloom Energy Corporation (NYSE:BE) was 29.62%, and its shares gained 730.50% of their value over the last 52 weeks. On October 10, 2025, Bloom Energy Corporation (NYSE:BE) stock closed at $86.87 per share, with a market capitalization of $20.327 billion.

ClearBridge Small Cap Growth Strategy stated the following regarding Bloom Energy Corporation (NYSE:BE) in its third quarter 2025 investor letter:

"Longstanding holding Bloom Energy Corporation (NYSE:BE), held since its July 2018 IPO, saw exceptionally strong performance as its alternative power solutions are increasingly viewed as a time-to-market advantage for electricity-starved data centers, including an initial data center deal with Oracle."

Bloom Energy Corporation (NYSE:BE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge fund portfolios held Bloom Energy Corporation (NYSE:BE) at the end of the second quarter, compared to 44 in the previous quarter.  While we acknowledge the potential of Bloom Energy Corporation (NYSE: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.

In another article, we covered Bloom Energy Corporation (NYSE:BE) and shared the list of AI stocks investors are watching closely. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.