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Bloom Energy Corp (NYSE: BE) opened nearly 15% down today after Jefferies downgraded the clean energy firm to “underperform” – citing valuation concerns and long-term growth uncertainty.

However, with the recently announced Nvidia-OpenAI partnership expected to boost demand for scalable energy solutions – Bloom’s fuel cell technology may be uniquely positioned to benefit.

Note that Bloom Energy stock has pulled back sharply from its recent high of about $86 – offering a compelling entry point for investors betting on the artificial intelligence (AI) infrastructure boom.

Why Jefferies downgraded Bloom Energy stock

Jefferies downgraded BE stock this morning mostly because the clean energy business may fail at sustaining its current multiple (nearly 14 times sales).

According to the investment firm, investor excitement has outpaced Bloom Energy’s fundamentals – especially since growth beyond 2026 remains uncertain.

Analysts also flagged underutilization of BE’s 2 GW product capacity, noting that even with large orders from Oracle and American Electric Power – the company based out of San Jose, California remains hundreds of megawatts short of full deployment.

Jefferies doesn’t expect Bloom to hit 1 GW in annual sales anytime soon – projecting only 1.3 GW by 2029.

Meanwhile, infrastructure bottlenecks, such as delays pipeline projects, further constrain growth, they concluded.

Why Nvidia-OpenAI deal warrants buying BE shares

Despite the downgrade, Bloom Energy shares’ long-term thesis remains intact – especially in light of the $100 billion data centre partnership that Nvidia announced with OpenAI last week.

Nuclear options are years away, and solar and wind face mounting regulatory headwinds under the Trump administration.

That leaves fuel cells as one of the few deployable solutions in the near term.

BE’s ability to deliver up to 50 MW within 90 days is unmatched and its team ups with Oracle and AEP are demonstrating early traction.  

“The power requirement is largely going to be coming from the new energy sector or not at all” – as per Arevon chief executive Kevin Smith.

Simply put, Bloom Energy’s technology could be the bridge between AI ambition and grid reality.

Should you buy Bloom Energy shares on today’s pullback?

Fuel flexibility further strengthens the case for owning Bloom Energy stock at current levels. BE’s systems can run on natural gas today while providing a clear pathway to a carbon-free future with biogas and hydrogen.

Additionally, their solutions align perfectly with the ambitious decarbonization goals of hyperscale companies.

Plus, long-term investment tax credit for fuel cells provides a strong financial incentive for customers as well.

Finally, Bloom Energy’s plans to double manufacturing capacity to 2 GW by the end of next year demonstrate confidence in its ability to scale – that makes BE shares even more attractive to own in 2025.

Note that Wall Street disagrees with Stifel’s bearish view on Bloom Energy as well. The consensus rating on BE stock remains at “overweight” at the time of writing.

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