Bloom Energy shares declined amid AI headwinds following top AI leaders flagging safety concerns in the industry.
- Mizuho raised the firm’s price target on Bloom Energy to $351 from $242 and kept an ‘Outperform’ rating on the shares.
- The firm said that stronger pricing and demand signals support higher long-term selling prices and EBITDA margins for Bloom.
- The fuel-cell producer will join the S&P 500 index from Sept. 21, following which it is likely to see increased demand.
Shares of Bloom Energy Corp. (BE) slumped 6.78% at the close on Monday, the steepest fall since mid-August, as headwinds in the artificial intelligence space weighed on the company.
Over the weekend, multiple AI leaders flagged risks of rapid development, including Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman and SpaceX CEO Elon Musk. Altman also said that OpenAI would not go public this year amid AI safety concerns.
However, several other corporate leaders and notable voices were not exactly aligned, marking a split in Big Tech’s stance on the hottest sector powering its rally this year.
Shares of BE recovered overnight, gaining more than 1% at the time of writing.
Analyst Sees Upside In BE Stock
Meanwhile, Mizuho raised the firm’s price target on Bloom Energy to $351 from $242 and kept an ‘Outperform’ rating on the shares. The revised target implies an upside of more than 36% from its last close.
The analyst added that recent project updates in New Jersey and New Mexico increased its confidence in the company’s outlook.
As per Koyfin data, the 12-month average price target on BE stock is $280.24, implying an upside of about 9% from its last close.
Of the 29 analysts covering the stock, 15 have a ‘Buy’ or higher rating on its shares, 12 have a ‘Hold’ rating, while two have a ‘Sell’ or lower rating.
Upcoming S&P 500 Inclusion
The fuel-cell producer will join the S&P 500 index from Sept. 21, following which it is likely to see increased demand, especially from index funds that will have to purchase the stock as per requirements. The prestige of inclusion alone can also result in higher prices.
BE Stock: Retail Stance
On Stocktwits, retail sentiment around BE stock dipped from ‘neutral’ to ‘bearish’ even as message volumes jumped 630% over 24 hours, as per platform data.
One user said about the ongoing AI headwinds, “$BE Don’t fall for the hoax – nice quote from Jensen Huang: “Without energy there is no next Industrial Revolution” – Jensen Huang via All In Summit 2026. Bloom will Bloom again.”
Another user said, “$BE this price suppression appears to look equivalent to the run-up to 220 from 197 and then the S&P 500 acquisition of BE. Eventually the numbers have to make it to the chart.”
A third user said, “$BE back to where it was BEFORE S&P inclusion. Good buying opportunity.”
BE stock has gained more than 160% year-to-date.
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