Bloom Energy stock spikes as much as 18% on $2.65 billion deal

Bloom Energy (BE) showed that its euphoric 2025 rally might continue this year. Shares of the fuel cell company jumped as much as 18.5% on Thursday morning after it disclosed a $2.65 billion deal with American Electric Power (AEP), a major utility in the US.

In a filing with the Securities & Exchange Commission (SEC), AEP stated that it had decided to "acquire a substantial portion" of its 900 MW option to procure solid oxide fuel cells for a power generation facility in Cheyenne, Wyoming.

At the time of writing, the Dow Jones Industrial Average (DJIA) has risen 0.4%, while the NASDAQ has dropped by half a percentage point in a mixed equities market. Continuing Jobless Claims in the US, reported early Thursday by the Department of Labor, rose above 1.9 million, though Initial Jobless Claims came in slightly below consensus at 208K.

Bloom Energy stock news

Back in November 2025, AEP purchased 100 MW of solid oxide fuel cells from Bloom Energy with the option to purchase another 900 MW. That option is largely being executed after AEP finalized a 20-year offtake with a "high investment grade third party customer" that it chose not to name. The utility said certain conditions were projected to be met by the end of the second quarter this year.

According to its filing, the third-party customer had agreed to purchase 100% of the power produced by the new generation facility.

While details of the deal have not been specified, Bloom Energy has been ramping up contracts with AI data center developers throughout 2025, and analysts believe this is yet another onsite energy production deal.

As AI-focused data centers come online, Bloom Energy's fuel cell technology, which produces power without combustion using natural gas and steam, has been in high demand due to its short construction timeline when compared to the multi-year requirements for normal utility generation.

Investors have been left wondering if energy stocks like BE can continue their dramatic rally into 2026. Bloom Energy shares rallied 291% in 2025 and are up 37% year-to-date after Thursday's spike.

Bloom Energy stock chart

BE shares jumped from $108 to an intraday high just above $128 on Thursday before sagging back below $120. At the time of writing, Bloom Energy stock has steadied near $119.

While the market is impressed by Bloom Energy continuing to rack up contract after contract, some bulls appear ready to take profits as the stock is trading at more than 100 times 2026 consensus earnings per share (EPS) of $1.08.

While the high of $128 marked a new range high above early December 2025 resistance, the consolidation has placed BE stock back near that same resistance around $120. The price level is consistent with the October 2025 resistance as well, which tells us that it is a significant level to hold onto.

If BE shares can close at or above $120 this week, then there's a good chance Bloom Energy stock will make another run at last November's resistance near $147. The Relative Strength Index (RSI) shows that BE is not yet overbought and likely has further room to run.