Bloom Energy (BE) has come into focus after securing long-term power deals tied to AI data centers, including a Nebius Group agreement worth up to US$2.6b and sole provider status for Oracle's AI campus.

Bloom Energy’s 1 day share price return of 15.41% came alongside its AI data center contract updates, capping a sharp year to date share price return of 233.28%. The 1 year total shareholder return is well into double digit multiples of the initial investment, which points to strong positive momentum rather than a short term spike.

If you are looking beyond Bloom Energy and want to see what else is moving in AI infrastructure, now is a good time to scan 49 AI infrastructure stocks

With Bloom Energy now tied to multi year AI power contracts and a share price that has already run hard, the real question is simple: is there still value on the table here, or is the market already pricing in future growth?

Most Popular Narrative: 25% Overvalued

Bloom Energy last closed at $328.91, while the most followed narrative pegs fair value around $263.65. This sets up a clear valuation gap for investors to unpack.

Surging demand for AI and cloud data center power is driving urgent capacity needs, and Bloom's proven partnerships with hyperscalers (Oracle, AWS, Coralogix) are accelerating adoption of its fuel cell technology as a resilient, on-site alternative. This is described as supporting sustained revenue growth and improving overall earnings visibility.

Want to see what is baked into that $263 fair value? The narrative leans on rapid revenue expansion, sharply higher profit margins and a richer earnings multiple. The exact mix of growth, profitability and discount rate assumptions may surprise you.

Result: Fair Value of $263.65 (OVERVALUED)

However, Bloom Energy’s reliance on natural gas, along with the risk that AI data center projects are delayed or reshaped, could quickly challenge the current fair value narrative.

Next Steps

Given the strong reactions around Bloom Energy’s AI power story, it makes sense to look at the underlying numbers and sentiment for yourself, then weigh the 2 key rewards and 4 important warning signs

Looking for more investment ideas beyond Bloom Energy?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.