Latest news with #KRSridhar
Yahoo
6 hours ago
- Business
- Yahoo
This Under-the-Radar Hydrogen Stock Is Surging on AI Data Center Plans. Should You Buy Shares Now?
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. More News from Barchart Trade the Warren Buffett Rally in UnitedHealth Stock With This High-Reward, Low-Risk Options Strategy Cathie Wood Is Buying BLSH Stock After the Bullish IPO. Should You? Apple Expects $1.1 Billion Tariff Hit in 4th Quarter After $800 Million Q3 Hit; CEO Tim Cook Warns 'Many Factors That Could Change' Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. 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. How Did the Hydrogen Stock Perform in Q2 of 2025? 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. CEO KR Sridhar emphasized during the earnings call that hyperscalers collectively will spend over $500 billion in capital expenditures in 2025, with at least $50 billion needed for power capital equipment. This represents demand equivalent to more than one nuclear power plant's worth of base load capacity every month, a market opportunity that traditional grid infrastructure cannot address at "AI speed." Bloom's manufacturing expansion plans are fully funded, requiring approximately $100 million spread across multiple quarters to reach 2-gigawatt annual capacity. Management expects this secular trend to continue well beyond 2026, positioning the expansion as just the beginning of multi-gigawatt capacity builds. With positive cash flow from operations expected and the recent refinancing of $113 million in convertible notes, Bloom appears financially positioned to capitalize on what Sridhar called "the largest market opportunity in enterprise power history." Is BE Stock Overvalued Right Now? Analysts tracking Bloom Energy forecast revenue to rise from $1.47 billion in 2024 to $2.56 billion in 2027. In this period, adjusted earnings are forecast to expand from $0.28 per share to $1.31 per share. BE stock is priced at 78.5x forward earnings, higher than its one-year average of 47.4x. If the hydrogen stock can command a 50x forward earnings multiple, which is not too steep, it should trade around $65 over the next 12 months, indicating an upside potential of over 45% from current levels. Out of the 19 analysts covering Bloom Energy stock, seven recommend 'Strong Buy,' two recommend 'Moderate Buy,' eight recommend 'Hold,' one recommends 'Moderate Sell,' and one recommends 'Strong Sell.' The average Bloom Energy stock price target is $31.53, which is below the current price of $46. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Bloom Energy (BE) Jumps 23% on More Supply Deals
We recently published . Bloom Energy Corp. (NYSE:BE) is one of the last week's top performers. Bloom Energy saw its share prices grow by 23.04 percent week-on-week, as investors took path from cues of more supply deals with other companies. This followed an interview with Bloomberg last Wednesday, where Bloom Energy Corp. (NYSE:BE) CEO KR Sridhar hinted at similar deals 'coming soon' after a recently inked supply agreement with Oracle Corp. Under the deal with the latter, Bloom Energy Corp. (NYSE:BE) will deliver fuel cell technology to select Oracle Cloud Infrastructure (OCI) data centers in the US to support the growing demand for its cloud computing services. Details about expected revenues and supply volume have not been disclosed. In line with the booming artificial intelligence industry, Bloom Energy Corp. (NYSE:BE) was targeting to double its total capacity to 2 GW by the end of 2026 from 1 GW at present. Of the 1 GW, more than half is currently supplied to critical data centers. Copyright: mikkolem / 123RF Stock Photo In the second quarter of the year, Bloom Energy Corp. (NYSE:BE) narrowed its net loss attributable to shareholders by 31 percent to $42.6 million from $61.8 million in the same period last year. Revenues grew by 19.5 percent to $401.2 million from $335.8 million year-on-year. While we acknowledge the potential of BE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Why Bloom Energy Rallied This Week
Key Points In an interview, Bloom Energy's CEO said there were deals with hyperscalers in the works. Bloom had already inked a milestone deal with Oracle back in July. A better-than-expected inflation print may also be helping. 10 stocks we like better than Bloom Energy › Shares of Bloom Energy (NYSE: BE) rallied this week, appreciating 27% as of 2:15 p.m. ET Friday, according to data from S&P Global Market Intelligence. There weren't any financial disclosures for Bloom this week, but CEO KR Sridhar did hold an interview with Bloomberg on Wednesday, during which he made very bullish comments on Bloom's future and the future of AI data centers. More hyperscaler deals in the pipeline? Bloom Energy's stock got a big lift in July, after fuel cells remained eligible for tax credits in the "One Big, Beautiful Bill" and the company inked a direct deal with Oracle to power its artificial intelligence (AI) data centers. Traditionally, Bloom Energy had made deals with data center real estate companies, power providers, and utilities. However, the Oracle deal may be paving the way for more direct deals with other cloud AI companies. Bloom's energy servers are based on fuel cells that can convert natural gas to electricity without combustion, making them a cleaner alternative than other forms of natural gas-based power. So, it's no surprise that with demand for electricity skyrocketing due to the AI data center buildout, Bloom is seeing renewed interest. Speaking with Bloomberg on Wednesday, Sridhar said, "You have seen the announcement with Oracle -- expect to see similar things coming soon." Apparently, hinting at more deals with cloud companies was enough to move the stock significantly higher. In addition to the Bloomberg interview, Bloom may also have benefited from the lower-than-expected inflation reading that came out on Tuesday. Following a lower-than-expected Consumer Price Index (CPI) report, economists have greatly increased their odds of a cut to the federal funds rate in September. Usually, interest rates are good for high-growth stocks trading at high multiples, so this could have helped this week's rally as well. Bloom Energy's rally has made the stock expensive Bloom currently trades around 6.5 times sales and 82 times this year's earnings estimates, so it's definitely not a cheap stock, especially for a company that basically sells hardware units. Nevertheless, the company currently finds itself in a fortuitous position amid the AI data center buildout. The question is whether the opportunity is as significant as the stock price suggests. 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 for investors to buy now… and Bloom Energy wasn't one of them. The 10 stocks that made the cut 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 $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy. Why Bloom Energy Rallied This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
7 days ago
- Business
- Bloomberg
Bloom Energy Expects More Power Supply Deals With Data Centers
Bloom Energy Corp. 's Chief Executive Officer KR Sridhar said the company is in talks with other major data-center developers following a deal to provide power to Oracle 's AI facilities. 'You have seen the announcement with Oracle — expect to see similar things coming soon,' Sridhar told Bloomberg Television.
Bloomberg
7 days ago
- Business
- Bloomberg
AI Powers Green-Tech Surge
Green firms in the US have found something of a lifeline in artificial intelligence after being bogged down by high interest rates, shrinking funding and, more recently, President Donald Trump's sharp rollback of support. Clean technology companies that have inked deals to support data centers have seen their stocks soar this year, outperforming the S&P 500.. Even as some clean energy firms struggle to convince investors that they can thrive during Trump's second term, the AI-driven surge in electric demand — the most in decades — is providing clear tailwinds for others. KR Sridhar, Bloom Energy, founder and CEO tells Bloomberg Businessweek Daily says AI will drive the need for energy, including fuel cells. (Source: Bloomberg)
