Bloom Energy stock BE rose 8% on Tuesday after the company was selected for inclusion in the S&P 500, adding another potential catalyst for the energy company as demand for power solutions from artificial intelligence data centers continues to grow.
S&P Dow Jones Indices announced after Friday’s market close that Bloom Energy would join the benchmark index.
The stock will begin trading as part of the S&P 500 on September 21.
UBS analyst Manav Gupta also raised his price target for Bloom Energy to $325 from $300 while maintaining a Buy rating.
Based on the stock’s previous close, the new target implied more than 28% upside.
S&P 500 inclusion could increase passive demand
Gupta said that S&P 500 additions have historically resulted in a meaningful increase in passive ownership as index funds purchase shares of newly included companies.
He described Bloom Energy’s inclusion as a significant positive catalyst for the stock.
Bloom Energy also stands out as the first energy company to be added to the S&P 500 since 2022.
Cheniere Energy had previously been considered a potential addition but was not selected.
The inclusion comes as Bloom benefits from growing demand for power infrastructure linked to the expansion of AI data centers.
Bloom targets data center power bottlenecks
The rapid expansion of AI infrastructure has created significant challenges around electricity supply.
Securing a transmission connection to a regional power grid can take four to seven years, while transmission operators face backlogs and shortages of high-voltage transformers and other equipment.
Bloom Energy offers an alternative through its solid-oxide fuel cells, which can operate using natural gas, biogas or hydrogen.
The systems are factory-fabricated and can be installed on-site within three to four months, potentially allowing data center operators to secure power without waiting for a traditional grid connection.
The company’s technology has gained validation among hyperscalers and neocloud operators.
In 2024, Bloom delivered a fuel cell power system for an Oracle cloud infrastructure AI data center in 55 days.
During Bloom’s second-quarter earnings call, CEO K.R. Sridhar said that “over a dozen US neoclouds, AI labs and colocation data center operators have validated and approved our power solutions.”
Revenue outlook strengthens as AI demand grows
Bloom reported more than $1 billion in quarterly revenue for the first time in the second quarter.
Management subsequently raised its full-year revenue forecast to $3.9 billion to $4.2 billion, with the midpoint representing a 100% increase from the previous year.
The company also expects full-year non-GAAP operating income of $800 million to $900 million.
Bloom has expanded its financing and strategic partnerships as demand increases.
Brookfield Asset Management increased its project financing framework with Bloom from $5 billion to $25 billion.
Separately, Industrial Development Funding partnered with Oaktree, MUFG and Morgan Stanley on a $1.7 billion project investment supporting Bloom fuel cell deployments for Nebius’ AI infrastructure.
Bloom has also introduced Power Connect, which it says reduces on-site power installation time by more than 40%.
Analysts expect Bloom’s earnings per share to reach $2.67 this year, up 251% from $0.76 in 2025. The stock trades at about 94 times projected earnings, while analysts forecast annual EPS growth of 84% in 2027 and 60% in 2028.
With index funds set to add Bloom Energy ahead of its September 21 S&P 500 inclusion, retail investors looking to gain exposure to the AI power infrastructure theme are likely to do so through investment platforms.
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