Renewable energy and power supplier Bloom Energy soared during Monday's stock market after announcing that Brookfield Asset Management will invest up to $5 billion to deploy its fuel cells at AI data centers. That follows a July pact with tech giant Oracle.
Bloom Energy and Brookfield announced a strategic partnership to "implement a reimagined future for AI infrastructure." In the press release early Monday, the companies said it's the first phase of a joint vision to build AI factories capable of meeting the growing compute and power demands of artificial intelligence.
Bloom Energy and Brookfield are actively collaborating on the design and delivery of AI factories globally, including a site in Europe that will be announced before the end of the year, according to the press release.
"Behind-the-meter power solutions are essential to closing the grid gap for AI factories," Sikander Rashid, Global Head of AI Infrastructure at Brookfield, said in the release Monday.
"Bloom's advanced fuel cell technology gives us the unique capability to design and construct modern AI factories with a holistic and innovative approach to power needs. As the world's largest AI infrastructure investor, this partnership adds a powerful new tool to our global growth strategy, especially in a grid-constrained market environment," Rashid added.
AI Boom: Bloom Energy Stock
Bloom Energy stock advanced 26.6% to 109.93 during Monday's stock market trade after ending last week down 3.4% to 86.87. Meanwhile, Susquehanna early Monday also raised its price target on Bloom Energy to 105 from 43, representing 20% upside compared to Friday's price at the close.
The announcement with Brookfield on Monday comes after Bloom Energy cut a deal in late July with Oracle to supply fuel cell technology for the hyperscaler's AI data centers.
Last month, Morgan Stanley analyst David Arcaro raised his Bloom Energy stock price target to 85 from the previous 44, citing "more credible potential for significant data center-driven order flow" as Bloom is "ramping a new relationship" with Oracle just as the top AI hyperscaler "is experiencing a massive inflection in demand."
Bloom on July 24 announced it would be shipping product to the first Oracle data center in 90 days and there are "many" additional Oracle data centers that the company will be delivering to in the future.
Since ending April at 18.32, Bloom Energy stock has soared 500% as of Monday's market close.
Bloom Energy stock has a perfect 99 Composite Rating. The stock also has a robust 99 Relative Strength Rating and an 80 EPS Rating.
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