Bloom Energy Juggles $25 Billion Brookfield Deal and Supply Chain Scrutiny Ahead of Earnings

Bloom Energy reports Q2 earnings as a $25B Brookfield financing framework for AI data centers vies with short-seller allegations of hidden dependence on Chinese scandium suppliers. Stock volatility remains extreme.

The clock is ticking toward July 28, when Bloom Energy will report second-quarter results and field questions on two forces pulling the stock in opposite directions: a massive expansion of its partnership with Brookfield Asset Management and a short-seller campaign questioning its scandium supply chain. Investors are caught between a funding framework that could reshape the company’s trajectory and allegations that threaten the credibility of its growth narrative.

Brookfield and Bloom Energy announced a fivefold increase in their financing commitment, lifting it from $5 billion to $25 billion. Under the expanded agreement, Brookfield will provide capital so Bloom’s customers can deploy the company’s solid-oxide fuel cells for AI data centers, and Bloom becomes the preferred provider of on-site power within the Brookfield ecosystem. The funds flow through Brookfield’s AI Infrastructure Fund, which aims to raise a total of $100 billion. Yet the $25 billion is not guaranteed revenue – it is a financing framework, and how quickly it converts into real projects and earnings remains to be seen in the coming quarters.

Bloom’s fuel cells convert natural gas, hydrogen, or biogas into electricity without combustion, offering a solution for power-hungry AI facilities that face grid constraints. The technology is already in use by chipmakers and large utilities, and the Brookfield deal positions Bloom to capture a slice of the AI infrastructure buildout.

The stock’s reaction to that deal was anything but straightforward. In European trading, shares slid 5.16% to €202.00, after closing the prior session at €213.00. Over the week, the decline reached 9.21%, and the monthly loss stood at 14.77%. In contrast, on July 14 the shares jumped 4.2% to $243.40 on a bounce that Wall Street saw as a defiant response to the short-seller report. The gap from the 52-week high of €308.50, set on June 25, now stands at 34.52%, while the stock remains a stunning 863% above its 52-week low of €20.98 from July 2025. Over twelve months, the gain clocks in at 825.97% (in EUR terms), and the year-to-date advance is 139.93%.

That extreme range is reflected in a 30-day annualized volatility of 112.36% and a relative strength index of roughly 40–43, indicating the stock has retreated from overbought territory without falling into oversold conditions. The 50-day moving average of €243.20 sits above the current price, while the 200-day average of €141.91 still offers a cushion of more than 50%.

The source of the recent turbulence is a report from Hunterbrook Capital, which alleged that Bloom Energy downplayed its reliance on Chinese suppliers of scandium oxide, a critical component in its fuel cells. The research firm said it built a short position ahead of the disclosure. A follow-up investigation published by the same source sharpened the accusation, claiming that CEO KR Sridhar repeatedly stated on stage with the Wall Street Journal in June 2026 that the company has “no China supply chain” and is “not dependent on China for scandium.” The report cited photos from Bloom’s own supplier conference in May 2026, posted on LinkedIn, as evidence that a business relationship with a Chinese scandium supplier continued.

Bloom Energy categorically rejected the claims. It called the original Hunterbrook allegations regarding accounting and financial metrics “false and misleading” and pointed to its audited filings with the SEC. On the supply chain, the company stated it holds sufficient inventories of scandium oxide to meet current demand and backlog, and that its supply chain does not depend on China – including for future expansion plans.

Hunterbrook’s central math challenges Bloom’s growth ambition: the company aims to scale installation capacity from roughly 1 gigawatt in 2026 to 5 gigawatts annually. That would require about 220 metric tons of scandium oxide, versus a global annual production of only 240 metric tons. The short seller called the target “physically and commercially unattainable.”

Despite the controversy, Wall Street analysts remain largely constructive. Susquehanna recently raised its price target, and RBC Capital maintained its outperform rating. Yet the valuation debate is intense: GF Value pegs the stock as roughly 795% overvalued relative to its estimated intrinsic worth, even though the GF Score of 63 out of 100 is above average. One cautionary signal is insider activity – company insiders sold $59.8 million worth of shares over the past three months, with no purchases during that period.

Bloom Energy’s market capitalization currently stands at around €60.74 billion. All eyes now turn to the earnings call on July 28, after the market closes, where management will discuss second-quarter results at 2 p.m. Pacific Time. Investors will be listening closely for whether the Brookfield framework has begun to translate into concrete orders – and whether the company can offer a convincing rebuttal to the supply chain doubts that have shadowed its remarkable rally.