Bloom Energy Shares Surge Amid AI Power Demand Optimism

Bloom Energy US0937121079

Bloom Energy Corporation is experiencing a significant rally as investor enthusiasm for its potential role in powering artificial intelligence data centers overrides cautious analyst commentary. Trading activity on Thursday saw substantial buying pressure, pushing the stock higher despite valuation concerns raised by research firms.

The optimism surrounding Bloom Energy is fundamentally supported by its latest financial performance. For the third quarter, the company reported a year-over-year revenue increase of more than 57%, reaching $519 million. It also achieved an adjusted earnings per share of $0.15. These results provide a tangible foundation for the market's positive sentiment, with the stock last quoted at 101.66 Euros, trading just below its 52-week high.

Market Momentum Defies Analyst Caution

In a notable divergence from broader market movements, Bloom Energy's stock price jumped over 15% on Thursday amid high trading volume. This surge occurred in direct contrast to a recent initiation report from Daiwa Capital Markets. The analysts began coverage earlier in the week with a "Neutral" rating and a price target of $98 per share.

While Daiwa acknowledged the company's long-term potential in the data center power market, it expressed a critical view of the current valuation relative to fundamental metrics. The market completely disregarded these concerns, driving the share price well above the average Wall Street consensus target, which currently stands at approximately $113.

AI Energy Demand as a Primary Catalyst

A key driver behind the intense buying interest is the growing conviction among investors that Bloom Energy holds a critical solution for the massive power requirements of the AI industry. With public electricity grids often operating at capacity, large-scale "hyperscaler" companies are actively seeking independent, on-site power generation—a scenario for which Bloom's solid-oxide fuel cell platform appears ideally suited.

Market observers also note that increased volatility may be partly attributed to new, leveraged exchange-traded funds (ETFs) offered by Tradr, which became tradable in mid-November and are amplifying price movements.

Technical Outlook and Near-Term Volatility

In the short term, market momentum is overshadowing traditional valuation models. From a chart perspective, the equity must now maintain a support zone around $110 to confirm its upward trajectory. A successful hold at this level would bring a resistance area near $125 into focus. Given the significant gap between the current trading level and more conservative analyst targets, elevated price swings are likely to persist in the coming trading sessions.