1. Bloom Energy Corporation (NYSE:BE)
Analyst Upside as of October 9, 2024: 56%
Number of Hedge Fund Holders: 29
Bloom Energy Corporation (NYSE:BE) ranks first on our list of the most promising AI stocks according to analysts. The green energy company designs, manufactures, and sells solid oxide fuel cells. These fuel cells are capable of running on different energy sources including natural gas and hydrogen. Bloom Energy also owns the Bloom Electrolyzer which produces hydrogen using electricity and helps companies reduce their emissions.
Bloom Energy is one of the most promising AI stocks and we say that because of its growing stakes in the industry. The company is crucial to the digital economy. Data centers account for nearly 2% of the global electricity use and could reach 9% by 2030. As of now, there are a multitude of challenges encompassing energy grids in the United States, part of which include wear and tear and obsolescence. To counter such, Bloom Energy Corporation (NYSE:BE) is creating a solution that would provide reliable power to AI data centers. The Bloom Energy server is not only capable of providing high power availability but it is also able to operate independently off the grid.
Bloom Energy’s (NYSE:BE) presence in AI is not limited to energy. In the past few months, the company has partnered with several AI startups and companies, taking up space in the domain. In July, the company partnered with CoreWeave to produce advanced AI data center power solutions. Bloom Energy will deploy its fuel cells to generate on-site power for CoreWeave at a data center in Illinois. The cells are set to be commissioned by Q3 2025. Aman Joshi, Bloom Energy’s Chief Commercial Officer, stated:
“Bloom Energy is thrilled to have been selected by CoreWeave. This validation from CoreWeave, a leader in AI, is a testament to our leading-edge technology and its importance to AI.”
Previously in May, the company joined hands with C3 AI, an enterprise AI application software company, to create AI-based solutions. These solutions will enhance the precision of Bloom’s product monitoring technology. Bloom will leverage C3 AI’s Reliability Suite to improve operational activity, enhance reliability, and increase energy. Here is what Thomas M. Siebel, Chairman and CEO of C3 AI, stated:
“A pioneer in the clean energy industry and a trusted expert on sustainability, KR is an important addition to the C3 AI Board of Directors. Climate and energy security are some of the greatest challenges of our time, and his unique experience and vision will strengthen our company as we support organizations across sectors on their sustainability journeys through use of enterprise AI.”
Overall, the company logged revenue worth $335.8 million in the second quarter of 2024, up by 11.5% year-over-year. Here is what the founder and CEO, KR Sridhar, of Bloom Energy Corporation (NYSE:BE) stated in the earnings call for Q2 2024:
“In my view, most of this load growth will be location specific. Let me highlight a few. To minimize latency, AI and other data centers need to be close to the customer, edge data centers will be the dominant users of power. They will be in economic nerve centers that are already power constrained.”
Overall, BE ranks first among the 10 safe stocks to invest in now. While we acknowledge the potential of energy companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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