According to Zhitong Finance APP, ahead of its latest quarterly earnings release, Bloom Energy (BE.US) shares rose more than 5% in pre-market trading on Monday. The market expects its quarterly results to highlight its rapid growth in the AI infrastructure power supply sector, while retail investors are betting that Thursday's earnings report could reignite the stock's momentum.
Bloom Energy shares plunged 21% last week, marking their worst weekly performance in nearly four months, driven by a broader selloff in semiconductor and AI sectors. Chinese chipmaker ChangXin Memory Technologies' next-generation memory plans sparked concerns about intensified competition, dragging down the broader AI trade and affecting Bloom Energy's data center power supply business.
Despite this, Wall Street's growth expectations for the company have heightened market attention on its earnings report. Truist is bullish on Bloom Energy's third-quarter performance, with core drivers including solid year-over-year demand, continuously improving business momentum, and enhanced profitability. The brokerage raised its price target from $218 to $240, implying roughly 2% upside from the current stock price, while maintaining a "Hold" rating.
The firm noted that Bloom Energy's current valuation already largely reflects long-term growth value. The price target increase was mainly driven by stronger-than-expected short-term demand and higher per-project equipment configurations that could push up average product pricing.
According to Fiscal.ai data, analysts generally expect the company's third-quarter revenue to grow approximately 104% year-over-year, from $519.05 million in the same period last year to $1.06 billion; adjusted earnings per share (EPS) to rise from $0.15 to $0.70. EBITDA is projected to reach $249.29 million, compared to $59.26 million a year earlier.
According to Koyfin data, on a sequential basis, analysts expect revenue to grow 0.6% to approximately $1.07 billion, while adjusted EPS is expected to decline about 14% to $0.67. EBITDA is projected to fall 5.1% to $240.55 million.
Bloom Energy achieved billion-dollar revenue for the first time in the previous quarter, with sales of $1.065 billion and adjusted EPS of $0.78. The company also raised its full-year revenue guidance to $3.9 billion to $4.2 billion and adjusted EPS guidance to $2.55 to $2.85.
Tech Giants' Computing Power Supply Demand Puts Spotlight on Bloom Energy
As AI computing demand grows, Bloom Energy's fuel cells can help data center operators quickly add on-site power supply. The system uses an electrochemical process to generate electricity from natural gas without combustion. Last week, American Electric Power (AEP.US) announced plans to invest approximately $4 billion to build a 702-megawatt project near Cheyenne, Wyoming, using Bloom Energy's technology. Google (GOOGL.US) will sign a 20-year power purchase agreement to procure electricity from the project. Construction is expected to begin this year, with the facility fully operational by the end of 2028.
Oracle (ORCL.US) also reiterated that Bloom Energy's fuel cell microgrid will remain the primary power source for the "Project Jupiter" in New Mexico. Its proposed agreement with El Paso Electric will provide power for later-stage construction, initial commissioning, and emergency backup. Oracle stated: "Our plans remain unchanged."
Previously, Bloom Energy and Brookfield Asset Management (BAM.US) reached an agreement in June to expand the financing framework for AI infrastructure power projects from $5 billion to $25 billion. On the social investment platform Stocktwits, despite posting volumes remaining at normal levels, retail sentiment toward Bloom Energy has been generally bullish over the past week.
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