Bloom Energy Soars: Here’s Why This Clean Energy Stock Is Rallying Hard Today

Bloom Energy just flipped the switch on another explosive trading session—and the market's taking notice.

Clean Energy Breakthrough

Shares surged as the company unveiled a major efficiency upgrade to its solid oxide fuel cell technology. The new system slashes operational costs while boosting output—exactly what investors wanted to hear.

Market Momentum

Institutional buyers piled in, driving volume through the roof. Short sellers got squeezed—hard. The rally built momentum throughout the session, leaving analysts scrambling to update their price targets.

Big Picture Energy Shift

Bloom's tech continues gaining traction as industries seek reliable alternatives to traditional power grids. Their value proposition keeps strengthening as energy volatility persists.

Of course, Wall Street's suddenly all-in on clean energy—until the next earnings miss, when they'll pivot faster than a DeFi token dump. For now, Bloom's burning bright.

Oracle announces AI hypergrowth, and it will need lots of energy

Bloom surged in July after it announced a landmark deal with Oracle on July 24. For reference, Bloom's energy servers can transform natural gas or hydrogen into electricity without combustion, producing electricity from an abundant source like natural gas in a cleaner way to meet escalating electricity demand.

Bloom had served utilities and other power users in the past, but the July deal with Oracle was the first direct agreement with a cloud hyperscaler.

Therefore, when Oracle provided astonishing backlog growth in its cloud infrastructure (IaaS) business last night, that also improved the outlook for Bloom, which will likely play a role in providing electricity to those data centers. Oracle reported $455 billion in remaining performance obligation in its cloud IaaS business, up an astounding 359%. On the conference call with analysts, CEO Safra Catz noted she expects cloud infrastructure revenue to grow from $18 billion this year to a stunning $144 billion in fiscal 2030 -- over just a matter of four years.

Needless to say, that much growth will require Oracle to build a lot more data centers, which will likely be served in part by Bloom's energy servers.

Image source: Getty Images.

Bloom looks expensive, but AI growth is off the charts

After today's rally, Bloom trades at 76.5 times next year's earnings estimates. That's very expensive for a low-margin hardware business, but Oracle's multiyear guide appears to have lifted the prospects for Bloom's growth over the 2027-2030 time frame.

So while Bloom's valuation makes it risky at these levels, its artificial intelligence (AI)-related growth story keeps getting better.