Bloom Energy (BE +0.96%) recently said that it has visibility on 25 gigawatts of deployments, which is the kind of line that makes you stop and do the math (and consider an investment). On the second-quarter earnings call, management laid out the scandium and capacity story in a way that stuck with many investors.
K.R. Sridhar, Bloom’s CEO, said:
The three takeaways for you all as investors to understand are the following: there is enough scandium on the planet that can be recovered economically viably to power of the planet. That is what’s available on the planet. We have visibility currently based on what we are working for 25 gigawatts of like deployments. And we are not dependent on China.
This is a strong statement that Bloom believes it can scale up solid-oxide fuel cell deployments to tens of gigawatts without hitting resource or supply chain constraints for scandium, a chemical element that improves fuel cell performance.
Image source: Getty Images.
Great numbers recently
The recent numbers back up that confidence. The company just reported record second-quarter revenue of $1.065 billion, its first billion-dollar quarter, with sales up 166% year over year and 42% sequentially. Product revenue reached $935 million, up 215% from a year earlier, driven mainly by orders from artificial intelligence (AI) data centers and other large power users.
Adjusted earnings jumped to $0.78 per share, nearly double the consensus estimate, and the company raised full-year 2026 guidance to ranges of $3.9 billion to $4.2 billion in revenue, $800 million to $900 million of operating income, earnings per share (EPS) of $2.55 to $2.85, and a gross margin of around 34%.
Bloom’s earlier guidance and capacity plans help translate that into a rough value per gigawatt. In the first quarter, management said its current manufacturing footprint will allow it to deliver 5 gigawatts of product annually and raised 2026 revenue guidance into the mid-$3 billion range before this latest bump.
Put those pieces together, and a reasonable estimate is that each gigawatt of commercial product capacity supports $700 million to $800 million of annual revenue at the current mix, with gross margins in the mid-30% range and rising operating leverage. If Bloom can ultimately deploy 25 gigawatts of systems over a decade or so, you are talking about a cumulative revenue opportunity in the tens of billions of dollars, not counting service income and upgrades. That is before you factor in the 2.8-gigawatt master agreement with Oracle and the expansion of the deal with Brookfield from $5 billion to $25 billion for on-site data center power.
Today’s Change
(0.96%) $2.22
Current Price
$232.16
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$229.10 – $244.44
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AI power demand considerations
The link between AI power demand and electricity is direct: Bloom’s solid-oxide fuel cells convert natural gas or hydrogen to electricity at high efficiency. Its systems sit in data centers, deliver multi-megawatt blocks of always-on power within months rather than years, and avoid the transmission constraints utilities face when serving new AI campuses. In its AI-focused commentary, management describes a vast addressable market where every new cluster that needs fast, resilient, lower-carbon power is a candidate for on-site fuel cell arrays, either instead of or alongside a hookup to the local grid.
That is where the utility angle comes in. AI data centers will still rely heavily on the grid for baseload and backup power. Analysts now talk about U.S. AI power demand rising from single-digit gigawatts to well north of 100 gigawatts in little more than a decade.
Right now, Wall Street spends most of its AI time on the chips and the models. Micron, Nvidia, and others deserve that attention, but the power layer is just as important. Bloom’s 25-gigawatt visibility is one piece of that power story. The utilities that will feed the grid side of those same loads are another.
So, if the company can ultimately deploy 25 gigawatts of systems at something like today’s economics, it is looking at a revenue opportunity that easily runs into the tens of billions of dollars over the life of those assets. That makes Bloom Energy a compelling investment choice right now.
