Key Takeaways
- Bloom Energy shares rose 8% today after SpaceX CEO Elon Musk said power and cooling hold back AI more than chips do, and that SpaceX plans to add 20 gigawatts of power and cooling by the end of 2027.
- Musk’s comment makes the case for on-site power stronger, but Bloom’s stock already prices in a lot of growth.
- Musk didn’t name Bloom, and analysts already expect its revenue to roughly double this year to $4.12 billion.
- Bloom reports third-quarter results after the close on Thursday, Oct. 22, and the number to watch is its gross margin against management’s guidance of about 34%.
Bloom Energy (BE) is up 8% today, two days before its third-quarter report, after SpaceX (SPCX) CEO Elon Musk told investors what he thinks is really holding AI back.
SpaceX itself is up 7% after a blowout quarter, reported after Tuesday’s close. Revenue rose 161% to $14.6 billion, and its AI segment brought in $7.56 billion, passing Starlink as its biggest business.
Musk needs a lot more power
On SpaceX’s earnings call Tuesday evening, Musk said:
“As I think people are starting to realize, the constraint on deployment of superintelligence is more in power and cooling and infrastructure than it is in chips.”
He said SpaceX plans to add 20 gigawatts of power and cooling by the end of 2027, drawing on “many different sources of power, not just gas turbines.”
That’s music to Bloom shareholders’ ears. Speed is the whole case for on-site fuel cells, since a data center doesn’t have to wait years for a grid connection.
Of course, Musk didn’t name Bloom, and he called SpaceX’s plan “highly proprietary.” For now, whether any of those 20 gigawatts go to Bloom is pure speculation.
TIKR tracks 29 analysts on Bloom Energy. How many say “Buy”?
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Thursday’s bar is already high
Analysts expect Bloom’s revenue to roughly double from $2.02 billion in 2025 to $4.12 billion this year, and to reach $9.89 billion by 2028…
That 2026 figure sits near the top of the $3.9 billion to $4.2 billion range management gave when it raised its outlook on July 28. I wouldn’t expect Musk’s comments to move those estimates until a deal shows up.
Margins matter just as much. Bloom’s gross margin has widened every year, from 20.3% in 2021 to 29.7% in 2025…
And management expects a non-GAAP gross margin of about 34% for 2026, so Thursday’s report needs to show that climb continuing.
That’s what investors are paying for. Even after Bloom fell 21% in a week earlier this month, it traded at 62.5x forward earnings at the last close, and today’s move takes it closer to 66x. At that price there’s little room for a miss.
Thursday matters more than Musk
So yes, Musk’s comment is a real tailwind for Bloom. The more AI’s biggest spenders say power is the bottleneck, the stronger the case for on-site power.
My take: Bloom was already priced for that demand, so Thursday’s job is to show it can turn that demand into margin. Bloom reports after the close on Thursday, Oct. 22, with its call at 5 p.m. ET. A gross margin on track for that 34% would do more for the stock than another Musk call. Of course, if SpaceX turns out to be a customer, those revenue estimates have room to climb.
So what is Bloom Energy stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
