Bloom Energy Soars as Mega AEP Deal Electrifies Outlook

Bloom Energy ( (BE) ) has risen by 17.30%. Read on to learn why.

Bloom Energy shares surged 17.30% over the past week as investors cheered a landmark $2.65 billion solid‑oxide fuel cell purchase deal with American Electric Power (AEP). The contract, tied to a new power facility planned near Cheyenne, Wyoming, includes a long‑term offtake arrangement and reimbursement protections, giving the market greater confidence in Bloom’s future revenue stream. The size and visibility of this order prompted traders to reprice Bloom’s growth outlook, driving heavy, volatile but mostly upward trading in the stock.

Analysts say the Wyoming project is a strong validation of Bloom Energy’s technology and its ability to win large, investment‑grade customers, particularly as data centers and AI‑related power demand soar. Clear Street raised its price target to $68, noting that Bloom’s sales “should benefit strongly” this year from the Wyoming order, which is linked to AEP’s 1 GW framework agreement signed in late 2024. RBC highlighted that AEP is moving to exercise a substantial portion of its 900 MW option, potentially accelerating Bloom’s deployment pipeline, while Evercore ISI called the AEP disclosure a “meaningful positive” and kept Bloom as one of its top ideas with a $152 target.

Despite the enthusiasm, some on Wall Street remain cautious, focusing on uncertainties in the contract structure and long‑term service revenues. BMO Capital’s Ameet Thakkar, for example, maintained a Hold rating and a $136 target, pointing out that the disclosed $2.65 billion appears to cover mainly equipment and leaves questions about additional service income over the 20‑year offtake period. Overall, Bloom Energy now carries a Moderate Buy consensus, with order momentum and AI‑driven power demand supporting the bull case, while early‑stage commercialization risk and limited clarity on the full economic value of the AEP deal keep more conservative investors on the sidelines.