Bloom Energy Stock: A Remarkable Year of Gains and Strategic Expansion

Bloom Energy shares concluded 2025 with a staggering 298 percent gain, fueled by multi-billion dollar agreements in the AI data center sector and a significant new capital infusion that provides a runway for further expansion. Following this rapid ascent, the stock's valuation has become ambitious, and its characteristic high volatility persists.

The central driver of the company's recent momentum is its strategic partnership with Brookfield Asset Management. In October 2025, the two firms established a collaboration valued at up to $5 billion. Under this agreement, Bloom Energy is positioned to become the preferred power provider for Brookfield's global network of AI data centers. Additional collaborations with industry giants Oracle and Equinix further solidify its standing within the booming data center infrastructure market. Industry projections suggest U.S. demand for data center power could surge from 25 gigawatts to 106 gigawatts by 2035—a quadrupling that would directly benefit Bloom Energy.

Securing a $600 Million Capital Facility

Supporting this growth trajectory, the fuel cell manufacturer secured a $600 million revolving credit facility in late December. Wells Fargo Bank acted as the lead arranger for the financing, which extends through December 2030. The funds are available in multiple currencies, including U.S. dollars, British pounds, euros, Japanese yen, and Singapore dollars.

Interest rates are based on the Term SOFR benchmark plus a margin ranging from 1.50 to 2.25 percent. Management stated the capital will be used for working capital, capital expenditures, potential acquisitions, and general corporate purposes. This new facility raises Bloom Energy's total debt to approximately $1.7 billion—a level considered manageable given its current growth dynamics, though it remains a key metric for investors to monitor.

Should investors sell immediately? Or is it worth buying Bloom Energy?

Analysts Revise Targets Amid Strong Fundamentals

The company's financial performance has shown marked improvement. For the third quarter of 2025, revenue jumped 57 percent to $519 million. Operationally, the company turned a profit, posting operating income of $7.8 million, a significant reversal from the $9.7 million loss recorded in the same period a year earlier.

In response, analysts have adjusted their outlooks. Clear Street raised its price target from $50 to $58 per share, while maintaining a "Hold" rating, citing improved revenue visibility for the coming years. Overall, among 28 analysts covering the stock, 43 percent currently recommend a "Buy," with 39 percent advising a "Hold." The average price target stands at $111, which remains substantially above the recent trading level near $88.

A Stock Characterized by Extreme Volatility

For potential investors, understanding the stock's volatility is crucial. Bloom Energy shares exhibit a beta of 3.01, indicating dramatically higher swings than the broader market. This was exemplified on December 29 alone, when the stock traded between $85.63 and $92.53—an intraday swing exceeding eight percent. Daily trading volume has averaged around 14 million shares, well above its historical norm.

Currently trading roughly 40 percent below its 52-week high of nearly $148 reached in November, the stock may present an intriguing entry point for risk-tolerant investors who believe in the AI-driven growth story. Such an investment, however, necessitates a high tolerance for significant price fluctuations.