Bloom Energy (BE) stock surged over 20% last week, hitting an all-time intraday high of $47.21, after CEO KR Sridhar revealed the company expects to announce additional power supply agreements for artificial intelligence (AI) data centers soon.
The fuel cell technology provider has emerged as a surprising beneficiary of the AI boom, as data centers scramble to secure reliable power sources for energy-intensive AI workloads. Bloom’s recent partnership with Oracle (ORCL) demonstrates the growing demand for on-site power solutions that can be deployed rapidly.
Sridhar told Bloomberg that Bloom Energy is in talks with other major data center developers, teasing that investors should expect announcements similar to the Oracle deal. Bloom currently provides more than half a gigawatt of electricity to data centers, with total capacity exceeding 1 GW, and aims to double that to 2 GW by the end of 2026.
Bloom’s value proposition centers on speed and reliability, as it can deliver cost-efficient onsite power for an entire data center within 90 days. With over 400 MW already deployed to power data centers worldwide and partnerships including Equinix (EQIX) and American Electric Power (AEP), Bloom appears well-positioned to capitalize on AI infrastructure growth.
Bloom Energy’s impressive second-quarter earnings results provide concrete evidence that its AI data center strategy is translating into meaningful financial performance. The company delivered a record Q2 revenue of $401 million, up 19.5% year-over-year (TOY), while gross margins expanded to 28.2% from 21.8% in the prior year period.
It reported an operating income of $28.6 million in Q2, compared to $3.2 million in the year-ago period. This was the third consecutive quarter of record profits and operating margins, showcasing the scalability of Bloom’s business model as demand accelerates.
Bloom’s service business has now been profitable for six consecutive quarters, achieving double-digit percentage margins for the first time ever. This consistency indicates improving reliability and operational efficiency that should appeal to mission-critical data center operators.
