Bloom Energy: Oracle Reinforces AI Power Surge
Update - May 20, 2026
Nebius is paying $2.6B for energy supplies over the next 10 years via systems from Bloom Energy, but isn't clear on how much Bloom Energy collects since it's only installed capacity of 328 MWs. The chart looks challenged here failing to top the recent highs.
-Bloom Energy (BE) up 10.9% in Wednesday's trading after artificial intelligence infrastructure provider Nebius (NBIS) disclosed it entered into a fuel cell capacity agreement with the company worth as much as $2.6B in total monthly services fees.
-In a 6-K filing, Nebius (NBIS) said on May 14 it entered into a master fuel cell capacity agreement and related system orders with Bloom Energy (BE) in which it will purchase the capacity and associated electricity generated by the power supply systems, and Bloom will install, operate and maintain the power supply systems.
-The power capacity being provided under the agreement is expected to come in three phases, each with a supply term of 10 years, and is expected to provide in the aggregate for guaranteed capacity of ~250 MW and system installed capacity of ~328 MW.
Update - Apr. 29, 2026
As expected, Bloom Energy guided up 2026 numbers big time hiking to $3.6B at the midpoint after repairing a big Q1'26 beat as follows:
-Q1 Non-GAAP EPS of $0.44 beats by $0.31.
-Revenue of $751.1M (+130.4% Y/Y) beats by $211.08M.
Evercore ISI raised PT to $295 from $179 with an Outperform rating. The analyst has an interesting view on the goal for 5GW of capacity.
-Taken with what we believe is a relatively conservative approximately 25% adjusted EBITDA margin profile, this would imply approximately $5B annually if the company were to remain at 5GW, which based on the current and future projected demand seems unlikely in our view. The assumptions outlined above would imply an approximately 13x EV/EBITDA multiple, which is roughly in line with premium IPP peers. Given our belief that demand for Bloom fuel cells is likely to increase as the AI power thematic matures, we are increasing our price target to $295, which ascribes a 27.5x multiple to our 2028 adjusted EBITDA estimate of approximately $2.8B."
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Original article posted on Apr. 16
- Bloom Energy surged on a major expanded deal with Oracle, securing up to 2.8 GW of fuel cell systems.
- BE guided to 2026 revenues of ~$3.2B (50%+ growth), with Oracle's order supporting potential upside to 2027 revenue of $5.1B.
- The fuel-cell company already has solid gross margins standing at 32%, with strong operating income and cash flows, unlike other alternative power solutions.
- Despite a bullish long-term thesis, BE trades at 8.5x 2028 revenue and 45x 2028 EPS; consolidation or a pullback is advised before adding.
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