Jim Cramer on Bloom Energy as AI Power Demand Grows
Jim Cramer said Wednesday that he would wait for a pullback in Bloom Energy after the stock’s sharp rise this year, while continuing to call the company his preferred way to gain exposure to behind-the-meter electricity demand from the artificial intelligence build-out.
Bloom Energy has emerged as an AI power play as data center developers look for ways to secure electricity without waiting for lengthy grid-connection timelines. The company provides onsite fuel-cell systems that can generate power near large electricity users, including data centers.
Cramer’s comments came after Bloom Energy shares gained about 219% this year, according to reports summarizing his remarks. The stock also rose sharply in September, adding to concerns about its valuation even as demand for onsite power continues to grow.
Bloom Energy’s business has benefited from growing interest in behind-the-meter power as AI data centers require large amounts of electricity. Its solid-oxide fuel-cell systems can be deployed onsite, allowing facilities to add power without relying entirely on the public grid.
The company has also expanded its partnerships around AI infrastructure. Bloom Energy and Oracle announced plans in April to deploy up to 2.8 gigawatts of power for AI infrastructure, while Bloom and Brookfield expanded an AI infrastructure partnership to $25 billion in June.
Cramer’s position is not that investors should immediately chase Bloom Energy after its rally. Instead, he continues to view the company as his preferred route into the behind-the-meter electricity market while waiting for a more favorable entry point.
The broader opportunity is tied to the difficulty of supplying enough electricity to new data centers. Reuters reported that U.S. developers are increasingly considering smaller onsite generation systems because grid connections can take years, creating demand for faster power solutions.
Bloom Energy’s upcoming financial results will provide another measure of whether demand from AI data centers and other large power users is translating into sustained business growth. For investors following the AI power market, the company’s orders, revenue outlook, and ability to deploy systems quickly will remain key areas to watch.
