Why Bloom Energy Stock Tumbled Today
Bloom Energy (NYSE: BE) has been one of the leading artificial intelligence (AI) stocks this year. Shares of the solid-oxide fuel cell system maker have rocketed 275% year to date. But the stock is retreating today after hitting an all-time high yesterday.
Bloom shares plunged as much as 13% in early trading, and were still down 5.2% as of 1:20 p.m. ET. That may be due to investors realizing Bloom Energy’s solution to powering data centers isn’t the only one coming.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
A nuclear renaissance
Bloom Energy has signed multiple deals to provide on-site fuel cell power systems for AI data centers under construction or in the planning stages. The on-premise solution and clean energy approach have some investors thinking Bloom could dominate serving the growing data center market.
A deal announced yesterday between Chevron and Microsoft, however, shows that there will be other providers for data center energy needs. Natural gas turbines will support the West Texas project beginning in 2028 and run for 20 years.
That there could be multiple energy solutions for data centers was reinforced today, when the U.S. Department of Energy announced financing to help revitalize the United States’ nuclear supply chain and expedite the installation of 10 new large-scale reactors.
$17.5 billion in loans is being made available to help finance five eligible utility and energy company projects. The goal is to have 10 newly designed large nuclear reactors under construction by 2030.
That’s another sign that Bloom Energy won’t monopolize data center energy supply needs, and that its stock price may have run too far on that presumption.
Should you buy stock in Bloom Energy right now?
Before you buy stock in Bloom Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bloom Energy wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $393,037!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,280,627!*
That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.