Bloom Energy is an up-and-coming artificial intelligence play, according to Morgan Stanley. Analyst Andrew Percoco reiterated his overweight rating on San Jose-based Bloom Energy after it announced a strategic partnership on Tuesday with Nvidia-backed GPU cloud provider CoreWeave. Under the agreement, Bloom Energy will deploy its solid oxide fuel cells to generate power for CoreWeave’s data center in Illinois. The analyst’s $22 price target implies shares of Bloom Energy can jump nearly 44% from its latest closing price. Shares of the green energy company are up 3.2% this year and have advanced more than 9% just this week. BE YTD mountain Bloom Energy, year-to-date “We believe BE is one of the most underappreciated ways to play the Powering AI theme,” Percoco wrote in a Tuesday note, adding that the agreement between both companies “further demonstrates the viability and role of solid oxide fuel cells to power data centers and solve the time-to-power constraints.” Bloom Energy’s fuel cells are set to be commissioned in the third quarter of next year for CoreWeave, which will use the technology to advance its cloud solutions for AI as the startup looks to compete with major technology companies . Percoco estimates the size of CoreWeave’s order to be about 15 megawatts. The analyst added that the average size of Bloom Energy’s data center announcements should grow as it finalizes larger greenfield deals—which is when a company builds new facilities in another country—with more hyperscaler tech companies. Bloom Energy and e-commerce giant Amazon last week entered into an agreement with Silicon Valley Power to deploy 20 megawatts of fuel cells for an Amazon data center, Percoco noted. Bloom also announced an agreement with chipmaker Intel in May to deploy its fuel cell technology to advance Intel’s data center expansion efforts in Santa Clara, California, he said.
