[Company & Issue] Why U.S. Fuel Cell Firm Bloom Energy Is Soaring Amid the AI Boom

Stock Price Soars 392% Since Early This Year
Expectations Rise for AI Data Center Power Supply
Must Outperform SMRs... Mid- to Long-Term Challenges Ahead

Bloom Energy, a U.S.-based fuel cell company, has seen a sharp surge in its stock price, driven by positive news regarding power supply for artificial intelligence (AI) data centers. The company is attracting large-scale investments as its solid oxide fuel cells (SOFCs) can generate power equivalent to a small power plant without being connected to the existing power grid, and can be installed in a short period of time. However, experts advise caution, noting that the fuel cell sector is expected to face competition from small modular reactors (SMRs) in the future, making it challenging to maintain long-term growth momentum.

Nearly 400% Stock Price Surge Since the Beginning of the Year... Boosted by Major Investments

On October 16, 2025 (local time), Bloom Energy's stock closed at $115.09 on the NASDAQ market. This marks a 392.47% increase since the beginning of the year. Until July 2025, Bloom Energy's stock had been sluggish, hovering in the low $20 range, but began to soar from August onward. Investors' attention was drawn to the expectation that fuel cells would become essential for the power supply of large technology companies' AI data centers.

In particular, securing a large-scale investment from global asset management firm Brookfield served as a significant catalyst. According to CNBC, on October 13, Bloom Energy and Brookfield signed a power infrastructure partnership agreement. Brookfield agreed to invest $5 billion (about 7 trillion won) in Bloom Energy and collaborate to build fuel cell systems for large AI data centers.

Currently, there are 109 AI data centers worldwide: 36 in Europe, 26 in the United States, 22 in China, and 25 in Asia excluding China. The number of AI data centers is expected to exceed 700 by 2029, leading to a significant increase in demand for fuel cell systems.

Self-Generated Power Like a Power Plant... Easy Installation and Eco-Friendly Features Stand Out

An image of Bloom Energy's large-capacity solid oxide fuel cell (SOFC). Bloom Energy website

Bloom Energy was founded in 2001 by KR Sridhar, an Indian-American scientist. Previously, he was the director of the Space Technologies Laboratory (STL) at the University of Arizona, where he developed a device at NASA's request that would allow a Mars exploration robot to produce oxygen and hydrogen by electrolyzing solar energy and moisture on the Martian surface. Building on this research, he developed Bloom Energy's flagship product, the solid oxide fuel cell (SOFC).

This fuel cell can generate its own electricity through internal chemical reactions when supplied with fuels such as natural gas or hydrogen. Its greatest advantage is the ability to supply power to locations like AI data centers or large vessels that require significant electricity but are difficult to connect to the existing power grid. To date, Bloom Energy has produced fuel cells with a total capacity of 1.5 gigawatts (GW), enough to supply electricity to about 1.2 million households.

Unlike power plants, which require lengthy site selection, permitting, and construction periods, Bloom Energy's fuel cells are easy to install and can be operational in a relatively short time. According to CNN, while it currently takes an average of more than seven years to build a new power plant or transmission network in the United States and Europe, Bloom Energy's fuel cells can be installed in as little as three to twelve months, depending on capacity.

These features have made Bloom Energy's fuel cells particularly attractive to U.S. AI data centers struggling to secure sufficient power. Companies such as Google, Walmart, eBay, and FedEx have installed Bloom Energy's fuel cells in their AI data centers.

Competition Expected with SMRs, Need for Sustainable Growth... Caution Over Stock Volatility

Conceptual diagram of Aurora, a small modular reactor (SMR) being developed by Oklo, a U.S. SMR technology company. Oklo website

Experts point out that while fuel cells are benefiting from the AI data center boom in the short term, investors should be cautious as competition with next-generation SMR companies is expected in the mid- to long-term. Once SMRs are commercialized after 2028, competition for the AI data center power supply market could intensify.

Dimple Gosai, a Bank of America (BOA) analyst, told CNBC, "The value of Bloom Energy lies in its ability to build power sources at lower costs and in a shorter time compared to traditional power plants. However, once the technology of small SMR companies such as Oklo becomes commercialized after 2028, it is highly likely that they will enter the market at even lower prices than fuel cells, intensifying competition."

There are also warnings that, given the recent sharp rise in the stock price, future earnings fluctuations could lead to significant volatility. In a report, Japanese investment bank Mizuho Bank stated, "Our investment opinion on Bloom Energy is 'Neutral,' and we maintain a target price of $79. The current stock price appears to be overvalued. Even if demand for AI data centers increases, it will be difficult for fuel cell manufacturing capacity to expand dramatically in the short term, so sales growth may not meet market expectations."