Key Points
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Bloom’s share price has outperformed Nvidia’s over the past five years.
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Although Bloom has improved its net margins, it still falls short of Nvidia’s profitability.
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Nvidia appears undervalued, whereas Bloom is currently trading at a premium.
Bloom Energy (NYSE: BE) has emerged as one of the most dynamic energy stocks of 2026, showing no signs of deceleration. Its shares have risen nearly 200% and grown ninefold since last July.
A comparison with the AI heavyweight Nvidia (NASDAQ: NVDA) highlights the striking pace of Bloom’s growth. Over five years, a $10,000 investment in the chipmaker would have been worth roughly $1,500 less than the same investment in the fuel‑cell firm.
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Data by YCharts
This chart, however, says very little about each business. Upon closer examination, Bloom is not the next Nvidia — and that is not favorable for its bottom line.
Image source: Bloom Energy.
What Bloom is not
Bloom, like Nvidia, is capitalizing on an artificial‑intelligence‑driven power‑shortage trend, offering fuel‑cell solutions that support AI infrastructure. While both firms are contributing to AI development, their profitability differs dramatically.
In the most recent 12‑month period, Nvidia reported approximately $159 billion in net income, whereas Bloom generated about $6 million. This contrast is also reflected in profit margins: Nvidia’s trailing‑12‑month net margin stands at roughly 63%, compared with Bloom’s near‑zero 0.25%.
These are fundamentally different business models: Nvidia operates with a capital‑light approach, while Bloom is capital‑intensive. Consequently, Nvidia’s stock has surged thanks to robust revenue growth and exceptional profitability. Bloom, despite improving its top line, has not yet proven the earnings capacity to sustain long‑term investor enthusiasm.
The disparity is also evident in their valuations. Nvidia is surprisingly inexpensive, trading at roughly 23 times forward earnings, whereas Bloom trades at about 114 times forward earnings — a markedly high valuation for a company that has only recently become profitable.
What Bloom is
By stock performance alone, Bloom appears to have become the next Nvidia. Nevertheless, investors should consider whether Bloom can replicate Nvidia’s trajectory of delivering consistently strong earnings each quarter.
One obstacle is Bloom’s execution capacity. Although Bloom estimates that U.S. data‑center energy demand will reach 150 GW in two years — double the current level — its current deployment capacity is about 1.5 GW to 2 GW annually. While the firm aims to scale up, it remains constrained at present.
Bloom’s current valuation appears stretched, prompting me to step back from the stock. I am concerned that the market may be misjudging the business — overlooking significant growth constraints that could trigger a sharp correction. While I would not consider it a strong buy at present, I would keep it on a watch list for a more attractive entry point in the future.
Should you buy stock in Bloom Energy right now?
Before purchasing Bloom Energy stock, investors should consider the following:
A thorough, data‑driven assessment is recommended before making any investment decision.
