This Stock Has Already Turned $10,000 Into $161,250. Here's Why I Still Want to Buy It.
Key Points
Bloom Energy's rich valuation caused me to miss out on its epic run.
While I was wrong about the stock before, I don't want to make the same mistake now.
A $10,000 investment made in Bloom Energy (NYSE: BE) just three years ago would be worth about $161,250 today, an eye-popping 152% annualized total return. I missed that run-up, thinking Bloom Energy was more hype than substance. While I made a mistake once, I don't plan to repeat it, as I still want to buy the hydrogen stock despite its massive run-up.
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Bloom Energy is becoming the standard for on-site AI power
Bloom Energy's advanced fuel cells have gone from a potentially promising technology to the standard for on-site AI power in just a few years, evidenced by its recent deals. In June 2025, Bloom collaborated with Oracle to deliver onsite power to one of its data centers in 90 days. Bloom announced earlier this year that it took just 55 days to complete the initial deployment, prompting Oracle to significantly expand the strategic partnership. Meanwhile, it signed a $5 billion strategic AI partnership with Brookfield Asset Management last October, only for Brookfield to expand it fivefold to $25 billion this June. It also recently expanded its relationship with an AI infrastructure supplier, another growth catalyst for the company. Robust demand for its fuel cells is driving blistering revenue growth (up 165% in the second quarter to over $1 billion) and increased profitability.
While I've been watching Bloom this whole time, I couldn't get past its valuation. At its peak, Bloom's market cap was over $90 billion, putting it at more than 35 times sales. Its valuation has since come off those levels due to the recent sell-off in AI-related stocks. It currently trades at about 17 times forward sales and has a market cap of more than $70 billion. Though that's not as cheap as it had been during the deepest part of the AI slump.
I wanted to capitalize on that sell-off, but couldn't due to trading restrictions. However, as soon as they lift, I plan to buy a small starter position and potentially write put options to purchase more shares at an even more attractive level.
Matt DiLallo has positions in Brookfield Asset Management and has the following options: short August 2026 $150 puts on Bloom Energy. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, and Oracle. The Motley Fool has a disclosure policy.