Clear Street Raises Price Target on Bloom Energy Amid Data Center Power Demand

Clear Street Raises Price Target on Bloom Energy Amid Data Center Power Demand

December 31, 2025

Investment firm Clear Street has raised its price target for Bloom Energy Corporation (NYSE: BE), reflecting growing optimism about the company's role in powering the data center and artificial intelligence boom. The adjustment underscores the critical importance of reliable, on-site power generation for energy-intensive computing infrastructure.

On December 29, Clear Street increased its price target on Bloom Energy to $58 from $50, while maintaining a Hold rating on the shares. The move accompanied upward revisions to the firm's revenue projections, raising the 2026 estimate by 2% and the 2027 forecast by 9% to $3.33 billion. Analysts cited expectations for an expansion of Bloom's internal production capacity for data center products as a key driver. While acknowledging Bloom's dominant market share and the reliability of its solid-oxide fuel cell systems, Clear Street cited current valuation levels as the reason for retaining its Hold stance. This follows an earlier initiation of coverage by Daiwa on December 3, which also issued a Hold rating with a $98 price target.

Bloom Energy's financial performance has shown significant momentum, reporting third-quarter 2025 revenue of $519 million—a 57.1% year-over-year increase. The company also posted a positive non-GAAP earnings per share of $0.15, successfully reversing a loss of $0.01 from the same period in 2024.

The company's strategic positioning was significantly bolstered by a landmark $5 billion partnership with Brookfield Asset Management, cementing its AI-first strategy. This collaboration establishes Bloom as the preferred on-site power provider for Brookfield's global AI infrastructure portfolio. Under the agreement, Brookfield will use its balance sheet to finance Bloom-sourced AI opportunities, with the first European project expected to be announced before the end of 2025.

To meet surging demand from data centers and the AI sector, Bloom Energy is undertaking an aggressive manufacturing scale-up. The company is on track to double its production capacity to 2 gigawatts by December 2026.

The series of analyst actions and robust financial results highlight Bloom Energy's evolving narrative from a clean energy provider to a critical infrastructure enabler for the digital economy. As AI workloads escalate, the demand for resilient, decentralized power solutions at data center sites is creating a substantial and sustained growth runway for specialized providers like Bloom.

Source: Yahoo