What Happened?
Shares of electricity generation and hydrogen production company Bloom Energy (NYSE: BE) fell 4.7% in the morning session after an analyst from Mizuho downgraded the stock due to valuation concerns following the stock's significant rally.
Mizuho lowered its rating on Bloom Energy to 'Neutral' from 'Outperform', pointing to the stock's more than 300% surge year-to-date. The firm also expressed concerns that the company's internal production capacity could not keep pace with the soaring demand from AI data center developers. Despite the downgrade, Mizuho increased its price target on the stock to $79 from $48, citing improved visibility for demand growth. Adding to the pressure, a regulatory filing reported a proposed sale of nearly four million shares. In contrast to Mizuho's view, analysts at JPMorgan Chase & Co. increased their price objective on Bloom Energy to $90 from $40, maintaining an 'overweight' rating.
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What Is The Market Telling Us
Bloom Energy’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 14.5% as its fuel cells were set to power a new 900-megawatt power facility in Wyoming, adding to a wave of positive sentiment from Wall Street analysts.
BFC Power advanced its plans to build the large plant in Laramie County, which would use Bloom Energy's fuel cells for continuous power. This development followed a series of bullish analyst reports. Multiple investment firms raised their price targets for the stock, including RBC Capital, BTIG, Morgan Stanley, and UBS. The core reason for the optimism was the soaring power demand from the artificial intelligence (AI) and high-performance computing sectors. Analysts noted that the buildout of data centers strained U.S. power supply chains, creating a significant opportunity for Bloom's fuel cells, which could be deployed rapidly to meet urgent power needs. The company's recent deal to supply power for Oracle's AI data centers was highlighted as proof of its ability to meet this demand.
Bloom Energy is up 278% since the beginning of the year, and at $88.25 per share, it is trading close to its 52-week high of $90.19 from September 2025. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $5,526.
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