10 AI News Stories You Can’t Miss

8. Bloom Energy Corporation (NYSE:BE)

Number of Hedge Fund Holders: 25

Bloom Energy Corporation (NYSE:BE) leverages solid-oxide fuel cell systems for on-site power generation, playing a dominant role in meeting the rising energy demands of AI data centers.

On Tuesday, November 19, HSBC analyst Samantha Hoh downgraded Bloom Energy Corporation (NYSE:BE) from Buy to “Hold” and raised the price target to $24.50 from $17.20. While the firm likes the AI stock on its AI data center and hydrogen secular themes, the recent strong price performance and expectations are reflected already, which is why they view the valuation as “fair”.

“Bloom has plenty of excess manufacturing capacity in the near term but may need to increase capacity at its Fremont facility from c750 MW to the GW scale by late 2025. Our estimates assume the company adds capacity gradually to its existing roofline while working capital continues to be a drag in the near term. However, we forecast Bloom to generate positive free cash flow in 2026 (accelerated from 2027 previously) and are increasing our DCF-derived TP to USD24.50 (from USD17.20), which incorporates a higher long-term/terminal growth rate for a longer and stronger tailwind from AI data center demand. Our DCF-derived TP of USD24.50 implies modest upside of 3.2%; hence we are downgrading the stock from Buy to Hold. We continue to like the Bloom story based on its exposure to strong secular themes of AI data center and hydrogen, but given the recent strong price performance and expectations reflected already, we view the valuation as fair.”