Fluence Energy, Inc. (FLNC): A Bull Case Theory

We came across a bullish thesis on Fluence Energy, Inc. on Stay Invested’s Substack by Denis Gorbunov. In this article, we will summarize the bulls’ thesis on FLNC. Fluence Energy, Inc.'s share was trading at $30.77 as of January 30th. FLNC’s forward P/E was 93.46 according to Yahoo Finance.

Fluence Energy, Inc., through its subsidiaries, provides energy storage and optimization software for renewables and storage applications in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.

FLNC addresses a critical and increasingly visible bottleneck in the global energy system that has emerged alongside the rapid buildout of data center infrastructure. As hyperscalers and enterprises expand data center capacity to support cloud computing and AI workloads, the demand for reliable, uninterrupted power has intensified.

Data centers cannot tolerate outages, and historically this reliability requirement has been met through diesel generators used for backup power. However, diesel-based solutions are carbon-intensive, costly to operate, and increasingly misaligned with global decarbonization mandates and corporate sustainability goals.

Fluence offers battery-based energy storage systems that provide a clean, flexible, and scalable alternative to traditional diesel backup power. These systems integrate seamlessly with renewable energy sources such as solar and wind, enabling utilities and large-scale facilities to ensure power reliability while reducing emissions. As grids become more complex and renewable penetration rises, energy storage is becoming essential not only for backup power but also for load balancing, grid stability, and peak demand management. This positions Fluence at the center of a structural, multi-decade shift toward carbon-free energy infrastructure.

Despite this compelling long-term backdrop, FLNC has faced near-term challenges. Tariffs have weighed on costs and disrupted execution, leading to a temporary dip in revenue and a difficult year operationally. However, these headwinds are now easing, and the underlying demand picture remains robust.

The company currently has a total backlog of approximately $5.3 billion, providing strong revenue visibility, and management expects revenue to grow by roughly 50% next year as project activity accelerates. As data center power needs continue to scale and clean energy adoption remains a global priority, Fluence stands to benefit materially from its role as a key enabler of reliable, zero-emission power solutions.

Previously, we covered a bullish thesis on Microvast Holdings, Inc. (MVST) by Crazerz in January 2025, which highlighted the company’s undervaluation relative to revenue, improving profitability, strong gross margins, and growth driven by battery innovation and EU expansion. MVST’s stock price has appreciated by approximately 26.57% since our coverage due to improving sentiment around execution and earnings visibility. Denis Gorbunov shares a similar view but emphasizes grid-scale energy storage and data center power demand.

Fluence Energy, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held FLNC at the end of the third quarter which was 23 in the previous quarter. While we acknowledge the risk and potential of FLNC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FLNC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.