6. Bloom Energy Corp. (NYSE:BE)
Number of Hedge Fund Holders: 29
Bloom Energy Corp. (NYSE:BE) manufactures and markets solid oxide fuel cells that produce electricity on-site, using a variety of fuels, including natural gas, biogas, and hydrogen. It also uses AI to optimize the performance of its fuel cell systems, improve efficiency, and enhance predictive maintenance capabilities to make solutions more reliable, cost-effective, and sustainable.
In Q2, revenue grew 11.52% to $335.77 million. AI-driven data centers and increased focus on reducing carbon emissions are driving demand for affordable fuel cell technology. Analysts predict a 24% revenue increase next year and expect the company to become profitable in 2025, with a projected profit of $26 million. To achieve this, the company needs to grow by 78% year-over-year.
The company’s fuel cells offer reliable, sustainable, and efficient power for data centers. They operate independently of the grid, reducing outage risks, and can be integrated into microgrids for added energy security.
Bloom Energy Corp. (NYSE:BE) partnered with CoreWeave, an AI company, in July. Bloom Energy Corp. (NYSE:BE) will power CoreWeave’s data center in Illinois, supporting its AI cloud solutions. This deal contributed to a 1.3% stock surge on July 17th. Bloom Energy also partnered with Silicon Valley Power to supply 20 megawatts of fuel cell power to AWS data centers in Santa Clara, aligning with the trend of using clean energy for data center operations.
The company announced a breakthrough in its SOFC technology in August, developing a hydrogen-powered fuel cell with 60% electrical efficiency and 90% combined heat and power efficiency. Its SOFC technology emits significantly less nitrogen oxides than traditional combustion systems.
Although hydrogen is currently more expensive than traditional fuels, the company’s electrical efficiency breakthrough could make hydrogen economically viable. This makes its fuel cells a cleaner option for electricity production. This also positions the company to become a leader in its sector.
ClearBridge Investments made the following comment about Bloom Energy Corporation (NYSE:BE) in its Q3 2022 investor letter:
“We were active in repositioning the portfolio in the quarter as market crosswinds opened idiosyncratic opportunities, adding two new industrials companies. Bloom Energy Corporation (NYSE:BE) is an electrical equipment company that makes solid-oxide fuel cell systems for on-site power generation, serving a variety of industries. Its fuel cells convert natural gas, biogas or hydrogen into baseload (non-intermittent) electricity without combustion, so there is low or no carbon emission. We expect significant upside through its ability to support the growing hydrogen economy, with a large opportunity for this in South Korea and meaningful policy support in the U.S. via the IRA, while other markets include biogas, carbon capture and marine transportation. Its natural gas energy server business is growing in the U.S. amid higher grid reliability concerns.”
