Bloom Energy plunges 20.5% after 300% rally, raises $2.2B convertible for expansion
Bloom Energy shares plunged 20.5% in December after a 300% rally over the prior four months as investors pocketed gains. The company secured a $5 billion Brookfield Asset Management partnership and an AI data center deal with Oracle, and launched a $2.2 billion convertible note offering to fund manufacturing and R&D capacity expansion.
1. Strong Growth Fueled by AI Data Center Partnerships
Bloom Energy reported $519 million in quarterly revenue, marking a 57% year-over-year increase, driven primarily by surging demand from AI data centers. The company’s solid-oxide fuel cells can operate on multiple fuels, making them well suited for large-scale compute facilities. In 2025 the stock climbed over 290%, reflecting strong gross margin expansion of 5.4 percentage points and a growing roster of enterprise clients, including AT&T, Honda and Oracle.
2. Strategic $5 Billion Brookfield Alliance and Capacity Expansion
To capitalize on the AI opportunity, Bloom Energy forged a $5 billion partnership with Brookfield Asset Management to deploy on-site power solutions for AI data centers. In support of this initiative, the company secured $2.2 billion through a convertible senior note offering, earmarking most proceeds for R&D and manufacturing capacity growth. Management plans to double production capacity to 2 gigawatts by the end of 2026 to meet expected demand.
3. December Correction Presents Long-Term Entry Point
After surging 300% over four months to a November peak market capitalization near $34 billion, Bloom Energy shares retraced 20.5% in December as investors took profits. Despite the pullback, the stock remains roughly 30% below its all-time high, while the firm continues to broaden strategic relationships with Oracle and other major customers. This correction may offer risk-averse investors a window to build positions in a company projecting sustained revenue growth and solid gross margins around one-third.