Bloom Energy shares jump 13%: Can the AI power stock sustain its rally?
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)
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CoreWeave's strong results trigger the rally
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.
iStock
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Why CoreWeave's outlook matters for Bloom Energy
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.
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Bloom Energy stock remains well below its record high
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.
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What Bloom Energy's past rallies indicate
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.
AP
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Earlier stock crashes took years to recover
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. The latest correction is the third major halving since its IPO.
Agencies
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Record revenue and higher guidance support the outlook
Bloom Energy has also reported strong operating performance. The company posted record quarterly revenue of approximately $1.2 billion, representing 138% year-on-year growth, according to BigGo Finance. It raised its 2026 revenue guidance to $4.4 billion-$4.6 billion, marking its third guidance increase this year. Its fuel-cell systems can operate using natural gas, biogas and hydrogen, offering data centres an alternative source of reliable electricity.
Agencies
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Can Bloom Energy sustain its recovery?
The latest rally signals renewed confidence in the AI infrastructure trade, but questions remain over Bloom Energy's valuation, cash flow and exposure to data centre spending. Its shares are vulnerable to project delays, higher financing costs and any slowdown in AI investment. While historical patterns suggest that further gains have often followed sharp rebounds, they do not guarantee another recovery.