By Kit Norton
Shares of Bloom Energy rose on Wednesday after the renewable energy and power supplier announced its artificial-intelligence infrastructure partnership with Brookfield Asset Management has expanded to $25 billion.
Bloom Energy stock advanced 2.7% to $311.23 on Wednesday after closing 10% higher on Tuesday. Shares have gained 260% this year and 1,288% over the past 12 months as the company has benefited from the AI sector's immense energy needs.
Investors regard Bloom's solid oxide fuel cell as a robust source of power to sate data centers' endless appetite. The cells operate independent of traditional power grids and are highly efficient, Bloom says, emitting only heat and clean water.
The stock's torrid pace or the company's usefulness to AI infrastructure doesn't look like it's slowing down anytime soon.
Bloom Energy late Tuesday said its partnership with Brookfield has increased to $25 billion from the initial $5 billion announced in late 2025 to deploy fuel cells at AI data centers.
The partnership expansion comes as Brookfield is looking to increase its framework to finance power projects for AI infrastructure, according to the media release.
"Today's commitment reflects the momentum we are seeing in the market, as evidenced by recently announced large-scale deals. Bloom is uniquely positioned to address the urgent need for clean, reliable power to support the rapid growth of AI," Bloom Energy CEO Aman Joshi said in the media release Tuesday.
Evercore ISI analysts Nicholas Amicucci and Sharon Wang on Wednesday wrote that while the announcement is short on details, it is supportive of the firm's bullish Outperform rating on Bloom. The analysts also raised their Bloom price target to $350 from $295. That represents 16% upside from Tuesday's closing price.
"Even framed conservatively, we view the expanded framework as an incremental positive demand indicator," Amicucci wrote.
The analysts added that the expansion signals that Bloom's "ability to provide reliable, dispatchable power," for AI training is a "differentiated offering relative to competitors."
Last year Bloom Energy signed major deals with Brookfield, data center company Equinix, and Oracle.
Bloom in April hiked its full-year outlook, guiding for revenue of $3.4 billion to $3.8 billion, up from a prior range of $3.1 billion to $3.3 billion. The company now sees adjusted earnings of $1.85 to $2.25 a share.
Bloom is expected to report second-quarter earnings in late July.
Write to Kit Norton at kit.norton@barrons.com
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