Important points
CNBC’s Jim Cramer said Wednesday that Bloom Energy remains his favorite way to invest in the behind-the-meter power that powers building artificial intelligence. He’s just not ready to pull the trigger yet. Bloom’s stock has soared 219% this year, including 34% this month as demand for on-site fuel cell systems accelerates alongside the construction of power-hungry AI data centers. These scalable modular blocks can provide primary and backup power outside of the public power grid, converting fuel to electricity without combustion. The stock has nearly doubled since Cramer covered the story in February. “Bloom Energy remains my favorite way to play if you want to touch the electricity that powers the construction of AI,” the “Mad Money” host said. “Long-term, I think it could go even higher over the next few years.” Bloom’s technology provides data center developers with a faster alternative to waiting years for a grid connection. Management said it was able to power Oracle data centers within 55 days. Data center size is measured in gigawatts of continuous power required to operate the facility, as energy is the limiting factor for capacity. Demand is already showing in Bloom’s results. Second-quarter sales rose 166% to $1.07 billion, well above expectations, and adjusted earnings per share were nearly double expectations at 78 cents. Management also raised its full-year sales forecast to between $3.9 billion and $4.2 billion, suggesting sales would double at the midpoint. Bloom is scheduled to announce its third quarter financial results on October 27th. Kramer also pointed to Bloom’s growing customer base. The company said the technology was validated with buy-in from leading hyperscalers, more than a dozen neoclouds, and AI labs. Bloom competes with other ways to generate electricity behind the meter, such as GE Vernova’s giant jet engine-like turbines, which make up the CNBC Investing Club’s portfolio. Kramer likes Bloom’s story, but said investors shouldn’t chase it. Bloom’s stock trades at approximately 108 times this year’s expected earnings per share and 59 times next year’s expected EPS. He concluded: “Wait for a pullback. We will definitely have a pullback, and that will be another gift for long-term investors.” Subscribe to CNBC Investing Club today to follow Jim Cramer’s every move in the markets. Questions about Cramer’s disclaimer? Call Cramer: 1-800-743-CNBC Want a deeper look into Cramer’s world? Punch him! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Have questions, comments, or suggestions about the Mad Money website? madcap@cnbc.com
