BE

As AI data centers demand massive amounts of reliable power, both Bloom Energy and Constellation Energy are positioned to benefit. Bloom Energy manufactures solid-oxide fuel cells that can be deployed in months, while Constellation Energy operates the largest U.S. nuclear fleet and has secured major PPAs with tech giants. Bloom offers aggressive growth potential but trades at a premium valuation (45x forward EPS), while Constellation provides stability and a dividend at a more reasonable valuation (19x forward EPS).

The article compares Bloom Energy, a fast-growing clean-energy company specializing in fuel cell systems for AI data centers, against Vistra, a diversified utility giant with 44,000 megawatts of generation capacity. Bloom Energy is recommended as the better buy for 2026 due to its explosive Q2 growth (166% revenue increase, $1B quarterly revenue milestone) and strong momentum in the AI infrastructure market, despite higher valuation multiples and execution risks. Vistra is acknowledged as a solid, well-executing company with steady performance and diversified assets, but lacks the dynamic growth trajectory of Bloom.

Bloom Energy stock has fallen 36% from its June peak to around $223, though it's still up 156% year-to-date driven by AI data center demand. The company reports Q3 results on October 22, with the key question being whether management will raise its 2026 revenue forecast for a third consecutive time. Currently trading at 82x earnings, the stock's valuation appears steep given the forecast assumes flat quarterly profits through year-end, and the analyst suggests waiting for evidence of stronger second-half revenue before buying.