Bloom Energy (NYSE:BE) has emerged as one of the biggest beneficiaries of surging demand for power to support artificial intelligence (AI) data centers. The company’s revenue has skyrocketed, and its stock has delivered enormous gains over the past year despite a sharp pullback from its peak.
However, even after that sell-off, shares recently traded around $200. Is Bloom Energy really worth that much?
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To answer that question, investors need to look beyond its impressive growth and consider how much the company’s earnings must increase to justify its current valuation.
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Why Bloom’s growth is so exciting
Bloom Energy’s stock has rallied more than 125% this year and recently traded around $200 per share (though that’s well below its peak of over $350). Fueling that rally has been the robust demand for the company’s fuel cells, which are becoming essential to powering the AI boom. Bloom’s revenue rocketed 138% during the third quarter to $1.2 billion, while its adjusted earnings per share surged more than 500% to $0.94 per share.
The energy company now expects its revenue to grow 122% this year to around $4.5 billion. Meanwhile, it expects to report adjusted earnings of $3.10 to $3.40 per share. That’s a more than 300% increase from last year’s level of $0.76 per share.
The driving force is surging demand for distributed power (on-site), particularly from data centers. They need reliable electricity and can’t afford to wait years for traditional grid connections. As a result, the company’s momentum has accelerated throughout 2026, with guidance rising each quarter.
However, extraordinary business growth doesn’t automatically make a stock an attractive investment at any price.
The valuation math
With Bloom Energy’s stock recently around $200 a share, the fuel cell maker trades at about 61.5x adjusted earnings at the midpoint of its guidance range. That’s a high starting valuation, even for a rapidly growing company. The S&P 500 currently trades at 22.4x earnings while the Nasdaq-100 Index fetches 27x earnings.
Here’s the issue. Even if Bloom Energy continues to rapidly grow its earnings, it will likely do so into the headwind of a contraction in its valuation multiple. I modeled several different scenarios. Each assumes the company will continue to grow rapidly, though all also anticipate that investors won’t be willing to pay as high a price for its future earnings:
