Key Points
Bloom Energy just announced a new $5 billion agreement with Brookfield Asset Management for a joint AI infrastructure build.
Bloom will be the preferred power provider for Brookfield's planned AI factories.
Bloom Energy (NYSE: BE) shares continued an astounding move higher today. Shares of the fuel cell maker have soared 80% over the last month. Another leg higher today has been powered by an announcement on Monday for a significant new partnership deal.
Bloom stock jumped another 10% this morning. As of 11:30 a.m. ET, it pared some of that gain, but remained higher by 4.5%.
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Image source: Bloom Energy.
Bloom Energy is the new AI darling
Bloom Energy shares started to rise when it first announced a collaboration with tech giant Oracle in late July. That's when many investors realized Bloom could already have a practical and sensible answer to the growing power needs from artificial intelligence (AI) data center compute power.
While many speculative nuclear power plays have caught Wall Street's attention in recent months, Bloom's fuel cell technology is already available for on-site power supply. That realization has sent Bloom Energy stock rocketing 380% higher since mid-July.
The latest partnership announced this week will place Bloom as the preferred power supplier for an AI factory buildout planned by global alternative asset manager Brookfield Asset Management. The $5 billion agreement places Bloom at the heart of the AI boom.
More agreements may be set to come, too. Investors should be wary, though, of just how fast Bloom's valuation grows. It now has a $28 billion market cap, and these AI factories will take months, if not years, to build. Bloom stock will likely take a breather at some point soon.
Howard Smith has positions in Bloom Energy and has the following options: short November 2025 $60 calls on Bloom Energy. The Motley Fool has positions in and recommends Oracle. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.