Bloom Energy share price popped by 20% on Wednesday as market participants cheered the strong earnings report. BE jumped to a record high of $271, up by 1,600% from its lowest level in 2025. This surge has turned it into a nearly $70 billion juggernaut. So, will the rally continue or is the end nearing?
Bloom Energy stock jumped as earnings soared amid AI demand
Bloom Energy is one of the top beneficiaries of the ongoing AI boom as top companies like Oracle have tapped it to power their data centers. More data center companies will likely continue using its energy solutions as the AI boom accelerates.
Bloom Energy published strong financial results on Wednesday, with its revenue rising by 130% to $750 million. Most of this revenue was from the product segment, which made over $653 million during the quarter.
The company’s gross margins also expanded to 30%, while the service margin rose to 13%. As a result, Bloom Energy made an operating income of $72.2 million and $73.6 million in free cash flow. In a statement, the CFO said:
“Bloom is a generational company with differentiated technology, a compelling strategy, and a mission-driven team focused on disciplined execution.”
The company also boosted its forward guidance, citing the recent deals with companies like Oracle, Equinix, and American Electric Power. It now expects to make between $3.4 billion and $3.8 billion in revenue, up sharply from the $2 billion it made last year.
Other profitability metrics are also expected to continue doing well. For example, its gross margin will be about 34%, while the operating profit will be between $600 million and $750 million. Its backlog has jumped to $20 billion.
Analysts have started boosting their stock targets, pointing to its strong growth and profits. RBC Capital Markets boosted the target from $335 from the previous $143, implying a 48% surge from the current level.
Still, the main challenge for the Bloom Energy stock is its valuation, which has become highly stretched recently. While the company deserves a premium valuation, its forward price-to-earnings (PE) ratio has jumped to 165, much higher than most companies.
For now, the valuation may not matter much as investors wait for the next major deal. Indeed, chances are that it will continue to beat on revenue and profits in the foreseeable future. The challenge, however, is that, at some point, the valuation will start to matter, as we recently saw with software companies.
Bloom Energy stock price technical analysis
BE stock | Source: TradingView
The daily timeframe chart shows that the BE stock price has surged in the past few years, helped by the strong revenue growth and partnerships.
It has soared above the 50-day Exponential Moving Average and the Strong Pivot Reverse level of the Murrey Math Lines tool at $250.
The stock also moved above the Ichimoku cloud indicator, while the Relative Strength Index (RSI) moved to the overbought level.
Therefore, the stock will likely continue rising, potentially to the Ultimate Resistance level at $300. It may jump to the Ultimate Resistance level of the Murrey Math Lines tool at $350.
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