Bloom Energy shares jump 13%: Can the AI power stock sustain its rally?

Detailed summary

Bloom Energy shares jumped 13% after strong CoreWeave results eased concerns over AI infrastructure spending. But with the stock well below its record high, can the rally last?

Bloom Energy shares rally 13% on Wednesday, November 11, after upbeat results and an improved revenue outlook from CoreWeave ease concerns about a slowdown in AI infrastructure spending. The stock records its strongest single-day percentage gain in nearly four months. (Sources: 24/7 Wall St, MarketWatch, BigGo Finance)

The rally follows CoreWeave's third-quarter results, which show revenue of $3.66 billion, up 168% year on year. The AI cloud computing company also reports a backlog of around $132.5 billion and raises its 2026 revenue forecast to $13 billion-$13.3 billion, signalling continued demand for AI infrastructure.

Bloom Energy supplies on-site power systems to data centres, making it a key beneficiary of the AI infrastructure expansion. Strong demand for computing capacity encourages data centre operators to continue investing in power infrastructure. CoreWeave's upbeat outlook therefore eases concerns about potential delays or cancellations of projects that could affect Bloom's order pipeline.

Despite Wednesday's 13% rally, Bloom Energy shares remain 39% below their June 22 record closing high of $345.85. The stock had fallen 52% from that peak by November 5, marking the third time since its 2018 IPO that it had lost more than half its value from a previous high.

Historical data offer some encouragement to investors. According to 24/7 Wall St, Bloom Energy has recorded 40 sessions in which its shares jumped at least 12% while trading 35% or more below their previous peak. In 28 of 36 comparable instances, the stock traded higher six months later, with a median gain of 57%. However, eight such rallies were followed by losses over the subsequent year.

Bloom Energy's historical performance also highlights the risks. The company experienced two previous major declines after reaching peaks in 2018 and 2021. Its shares took approximately 2.3 years to recover from the first decline and 4.5 years to regain their previous high following the second.

Bloom Energy has also…

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