What Happened?
Shares of electricity generation and hydrogen production company Bloom Energy (NYSE:BE) jumped 3.6% in the afternoon session after Mizuho raised its price target on the stock, citing strong demand from data centers. The firm increased its target to $48 from $31, marking the highest forecast among analysts. Mizuho's positive view stemmed from Bloom's plans to accelerate manufacturing to meet the growing power needs of data centers. This analyst upgrade followed the company's strong second-quarter results, where it reported earnings per share of $0.10, significantly beating analyst forecasts. Revenue also grew 19.5% year-over-year to $401.2 million and exceeded expectations. The quarter also showed a turn to operating profit, a reversal from a loss in the previous year. The bullish sentiment echoed across Wall Street, as Morgan Stanley also recently lifted its price target.
After the initial pop the shares cooled down to $37.42, up 3.7% from previous close.
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What Is The Market Telling Us
Bloom Energy’s shares are extremely volatile and have had 63 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock gained 3.3% on the news that the company announced a collaboration with Oracle to power the tech giant's artificial intelligence (AI) data centers. The collaboration involved deploying Bloom's fuel cell technology at select Oracle Cloud Infrastructure (OCI) data centers in the U.S. This initiative aimed to meet the increasing power demands of AI and cloud computing services by providing a reliable and cost-efficient onsite power source. The announcement, which included a goal for the first deployments within 90 days, sent the company's shares to their highest level in several years. The stock's performance reflected strong investor enthusiasm for Bloom's potential to capitalize on the rapidly growing AI sector.
Bloom Energy is up 60.1% since the beginning of the year, and at $37.42 per share, it is trading close to its 52-week high of $37.62 from July 2025. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $2,671.
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