Bloom Energy Skyrockets 50% in July—Here’s the Fuel Behind the Rally

Clean energy stocks got a jolt last month—and Bloom Energy led the charge with a jaw-dropping surge.

What lit the fuse?

Wall Street’s suddenly hot for hydrogen (again). Short squeezes, policy tailwinds, and a classic case of FOMO sent speculative capital flooding into alt-energy plays. Bloom’s solid-state tech—plus a whiff of that sweet, sweet government subsidy aroma—made it a prime target.

Of course, half these momentum traders couldn’t explain an electrolyzer if their margin calls depended on it. But when the Fed’s printers go brrr, fundamentals take a backseat to hype.

Will the rally hold? Check back after the next CPI report.

Bloom gets a boost from Congress and Oracle

Bloom makes fuel cells that can convert natural gas or hydrogen into electricity without combustion, making them a cleaner alternative than other options. Still, it was unclear as to whether fuel cells WOULD qualify for federal clean energy tax credits, after changes were made to the existing tax law in the "One Big, Beautiful Bill."

But while some clean energy segments such as solar and wind faced increased restrictions, fuel cells remained eligible for the full investment and production tax credits for low-carbon energy until 2034, when the tax credit will begin phasing out.

sell-side analyst Mark Strouse wrote in a note, "As competing gas turbine pricing and lead times remain elevated, we believe the tax credits for fuel cells can push hesitant BE customers over the finish line and expect order activity to increase accordingly."

Lo and behold, on July 24, Bloom inked a purchase order with(ORCL 0.07%), its first direct order with a cloud hyperscaler for deployment of Bloom's energy servers at Oracle Cloud Infrastructure (OCI) data centers. While the scale and scope of the Oracle deal weren't outlined specifically, it is the first time Bloom is working directly with a hyperscaler, and not a data center real estate company or electric utility. Thus, the Oracle deal could serve as a jumping-off point for more large deals if Bloom executes.

Image source: Getty Images.

Bloom is an interesting AI play

Bloom's solutions may be an ideal fit for the AI age, as AI data centers have accelerated overall electricity demand beyond capacity while companies still try to limit carbon emissions and pollution. Certainly, the Oracle deal and tax credit confirmation increased the demand outlook for the company last month, with an upside that is hard to quantify.

However, the market is now pricing in some strong growth, with the stock trading at 77 times this year's earnings estimates and 45 times 2026 estimates.