Bloom Energy: The Hidden Gem in the Energy Shift—Why This Stock Could Soar Post-Big Bill Passage

The U.S. energy landscape is undergoing a seismic shift, and Bloom Energy (BLOM) is positioned to capitalize on two game-changing trends: the insatiable demand for AI-driven data center infrastructure and the favorable regulatory tailwinds from the newly passed “One Big Beautiful Bill Act.” While solar and wind peers face headwinds, Bloom's unique technology stack—combining hydrogen flexibility and natural gas efficiency—is primed to outperform. Let's dig into why this stock could be a breakout winner in 2025.

The “Big Bill” and Bloom's Strategic Edge

The Senate's passage of the One Big Beautiful Bill Act on June 19, 2025, marks a pivotal moment for energy policy. While the legislation slashes tax incentives for solar and wind projects (bad news for SunPower (SPWR) and Enphase Energy (ENPH)), it supercharges support for natural gas development through expanded leasing, lower royalties, and streamlined permitting. This is where Bloom's solid oxide fuel cell (SOFC) technology shines:

1. Natural Gas Efficiency: Bloom's systems can run on natural gas, a fuel now benefiting from the Bill's provisions. The Act's mandates to expand onshore and offshore natural gas lease sales (Title VIII, Section 80171) and reinstate lower royalty rates (Section 80105) will drive down fuel costs for data centers and industrial users.
2. Hydrogen Flexibility: Though the Bill phases out federal hydrogen tax credits (Section 112001–112009), Bloom's fuel cells can also use green hydrogen when paired with renewable energy. This hybrid capability positions the company to capitalize on state-level incentives or private-sector demand for low-carbon solutions.

The legislation's focus on expedited permitting for energy infrastructure (Section 41002) further reduces deployment costs for Bloom's modular systems, making them an attractive alternative to traditional grid power.

Why AI Data Centers Are Bloom's Secret Weapon

The AI boom isn't just about software—it's a hardware revolution. Training large language models (LLMs) requires massive data centers consuming 24/7 power, and traditional grids can't keep up. Bloom's always-on, 99.99% reliable fuel cells offer unmatched advantages:
- Efficiency: 50–60% energy efficiency (vs. ~30% for coal plants).
- Resilience: No downtime during grid outages.
- Scalability: Plug-and-play modules for fast deployment.

Big tech firms like Meta (META) and Amazon (AMZN) are already adopting Bloom's systems. With the global AI data center market expected to hit $150 billion by 2027, this is a tailwind that won't fade.

Why Solar/Wind Peers Are Struggling—And Bloom Isn't

The “Big Bill” slashes tax credits for solar and wind (Section 112001–112009), leaving companies like First Solar (FSLR) and NextEra Energy (NEE) scrambling for profitability. Meanwhile, Bloom's business model isn't tied to these credits—it's fuel-agnostic and infrastructure-driven.

The Bill's repeal of methane regulations (Section 42113) also reduces compliance costs for natural gas users, further lowering Bloom's operating expenses. In contrast, solar/wind projects now face steeper hurdles without tax breaks, making Bloom's systems a more cost-effective choice for industrial clients.

The Near-Term Catalyst: House Approval and Stock Momentum

The Senate's passage is just the first step. The House vote on the “Big Bill”—expected by late July—is the next critical catalyst. If passed, it will lock in lower natural gas costs and faster permitting timelines, directly boosting Bloom's margins.

Investors are already waking up to this: BLOM's stock is up 22% since the Senate vote, while solar peers are down 15% on average. This divergence will likely accelerate once the House greenlights the bill.

Investment Thesis: Buy the Dips, Target $35–40 by Year-End

• Buy Point: Current price ($22) offers a 15% discount to its 52-week high.
• Catalysts: House passage, new AI/data center contracts, and Q3 earnings (August 2025).
• Risk: Delays in the Bill's House approval or macroeconomic slowdowns.

Bottom Line: Bloom Energy is the rare stock that thrives in both pro-fossil and pro-green energy environments. With AI as its growth engine and the “Big Bill” shielding its fuel costs, this is a buy-and-hold name for 2025.

“This is the kind of setup you dream about—policy tailwinds, secular demand, and a stock that's just getting started. Don't miss this one.”

Action to Take: Open a position in BLOM now, and set a target of $35–$40 by year-end. The House vote and AI adoption metrics will be your triggers to double down—or cut losses if the bill stalls.*

Disclaimer: This article is for informational purposes only. Always do your own research before making investment decisions.