Plug Power Inc. (PLUG): A Bull Case Theory

We came across a bullish thesis on Plug Power Inc. on Stock Pursuit’s Substack. In this article, we will summarize the bulls’ thesis on PLUG. Plug Power Inc.'s share was trading at $2.01 as of November 28th.

Plug Power Inc. develops hydrogen fuel cells product solutions in North America, Europe, Asia, and internationally. Hydrogen fuel cells are emerging as a critical solution in meeting soaring AI-driven power demand, and Plug Power sits at the center of this infrastructure shift. As cloud computing, AI clusters, and electrification strain the grid, data center developers are increasingly turning to on-site, modular, and quickly deployable alternatives.

Plug Power, the largest liquid hydrogen producer in the U.S., is gaining momentum as hydrogen fuel cells transition from early-stage technology to viable primary and backup power for hyperscale facilities. The company’s PEM electrolyzers and fuel cell systems are now being tested or deployed across major data center operators, supported by a rising industry trend highlighted by Bloom Energy’s recent success and ECL’s groundbreaking all-hydrogen, off-grid modular data center.

These milestones show hydrogen’s scalability as facilities move toward 1–2 GW hydrogen-powered campuses, positioning Plug as a key beneficiary if primary power adoption accelerates. Despite skepticism and high short interest—largely driven by Plug’s volatile history—the macro environment has become unusually favorable. Hydrogen costs continue to decline, green hydrogen is expected to reach $2–$2.5/kg by 2035, and global hydrogen markets are projected to grow sharply as electrolyzer capex falls and renewable energy expands.

Plug’s business is already reflecting this shift: major electrolyzer agreements in Australia, Uzbekistan, and Europe, a growing 8 GW pipeline, and recent strategic monetization of electricity rights with a U.S. data center developer. With revenue expected to grow 20–25% next year, improving cash burn, and a path toward EBITDAS-positive operations by 2026, Plug is positioned to ride a multi-year demand wave. If data center primary power contracts materialize—as grid limitations force operators to seek alternatives—the upside could be meaningful.

Previously we covered a bullish thesis on Plug Power Inc. (PLUG) by Tiny Stock Ninja in May 2025, which highlighted margin improvement, European electrolyzer expansion, and strengthened liquidity. The company's stock price has appreciated approximately by 157.69% since our coverage. This is because the thesis played out operationally. The thesis still stands as execution remains key. Stock Pursuit shares a similar view but emphasizes AI-driven data center power demand.

Plug Power Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held PLUG at the end of the second quarter which was 13 in the previous quarter. While we acknowledge the potential of PLUG 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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Disclosure: None.