Key Points
Bloom Energy's valuation has come down from its lofty peak.
I also had to wait for trading restrictions to lift.
I'd love an opportunity to add to my Bloom Energy position in the future.
After watching Bloom Energy (NYSE: BE) from afar for a while, I finally added the stock to my portfolio. I had been waiting for a pullback. While that happened a while ago, I couldn't buy shares due to trading restrictions. With those restraints recently lifting, I pounced on the opportunity to add the top hydrogen stock to my portfolio.
Here's why I'm thrilled to own a piece of this critical power solutions provider.
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Here's what took me so long
I completely missed the run-up in Bloom Energy stock over the past few years. Admittedly, I thought the company was more hype than substance. As I began to realize my mistake, I didn't want to buy into the momentum that had sent its valuation to an absurd level. At its peak earlier this year, Bloom Energy traded at more than 30 times revenue.
However, the stock has cooled off a little bit from its red-hot run. It's currently down about 40% from its 52-week high. As a result, it now trades at a slightly less absurd valuation at 14.5 times forward sales and 75 times forward earnings. That's still very rich, but not completely unreasonable for a company that expects to grow its revenue by 100% this year and generate real, growing profitability.
I wanted to buy shares during the recent sell-off in AI stocks. However, I couldn't due to trading restrictions. Due to our disclosure rules, I can't buy a stock I recently wrote about. I'm also part of a project that has restricted participants from buying shares. With both restrictions recently lifted, I was finally able to buy the stock.
Why this likely won't be my only purchase
Bloom Energy's advanced fuel cells have gone from a promising technology to a critical solution over the past year. Two partnerships highlight this shift.
In July 2025, Bloom Energy announced a collaboration with Oracle (NYSE: ORCL) to deliver power to its data centers at the speed required for AI. The collaboration aimed to deliver on-site power to Oracle's AI data centers within 90 days. Bloom Energy delivered its first fully operational fuel cell system to Oracle in just 55 days. That led the cloud giant to expand the strategic partnership in April to deploy up to 2.8 gigawatts to accelerate AI infrastructure build-out.
Bloom Energy also announced a $5 billion AI infrastructure partnership with Brookfield Asset Management (NYSE: BAM) last October. The partnership marked Brookfield's first investment through its dedicated AI infrastructure strategy, with Bloom becoming its preferred partner for on-site power solutions at its global AI factories (specialized AI data centers). Brookfield has since expanded that partnership fivefold to $25 billion to build and finance rapid power infrastructure for AI.
Given the rapidly expanding demand for its fuel cells, I expect to continue adding to my Bloom Energy position. I'd pounce if there were another 20% sell-off in the stock, assuming no fundamental shift in the thesis. There are certainly downside catalysts, including permitting issues for data center developments linked to Bloom Energy's fuel cells.
I'm finally building a position in Bloom Energy
I've had my eye on Bloom Energy for a while now, and finally added it to my portfolio. Even though I had to wait a little longer due to trading restrictions, I still like my entry point. I'd love an opportunity to add to my position if the stock sells off again, given my high conviction in its future growth.
Matt DiLallo has positions in Bloom Energy and Brookfield Asset Management and has the following options: short October 2026 $150 puts on Bloom Energy. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, and Oracle. The Motley Fool has a disclosure policy.