1,000% with Bloom Energy - Now Ballard Power or Pure Hydrogen? Or maybe Plug Power after all?

Bloom Energy & Plug Power: Data hunger meets energy transition - fuel cells take off

The global expansion of data centers for artificial intelligence (AI) and cloud services is currently creating an entirely new energy market and electrifying the stock market. Alongside nuclear power, particularly in the form of small modular reactors (SMRs), providers of clean, decentralized power solutions are now benefiting as well. Fuel cells and hydrogen technologies are currently experiencing a spectacular comeback on the stock market. Bloom Energy, for instance, has surged more than 1,000% in a year, while Plug Power has gained nearly 500% within just a few months.

The reason: demand for electricity from large data centers is growing rapidly, while conventional grids are reaching their capacity limits. According to estimates, around a quarter of all data centers will be powered directly by their own energy supply by 2030. The market for fuel cell systems in this segment could grow to more than USD 800 million over the next ten years – a strong signal for technologies that combine grid independence and low-carbon power generation.

Bloom Energy relies on stationary solid oxide fuel cells that continuously generate electricity on site – whether with natural gas, biogas or, in the future, green hydrogen. The systems are considered particularly reliable and are suitable for the continuous load required by AI clusters and server parks. Plug Power takes a more comprehensive approach and offers a complete hydrogen ecosystem – from production and storage to use in fuel cells for industrial and stationary applications. This positions the Company as a key partner for operators who want to rely on hydrogen as a clean primary energy source.

However, both stocks have already performed very well, and much of their future growth is already priced in.

Pure Hydrogen: A hidden gem for the AI energy hype

One hidden gem in the sector is Pure Hydrogen – at least for now. The Australian company already supplies fuel cells for commercial vehicles in the US. But they also offer generators to provide decentralized hydrogen power to buildings. This makes data center operators potential customers as well. Pure Hydrogen's systems are suitable as backup solutions or even primary power sources.

The core business is already developing positively. This year, the Company is expanding in the US, the world's largest commercial vehicle market. Deliveries to Riverview International Trucks were already made in the first half of the year. In the current quarter, the first Class 8 fuel-cell-powered trucks are scheduled to be delivered to California. They are suitable for long-haul transport as well as specialized vehicles in waste disposal and concrete mixing. The customer in this case is the GTS Group. Founded in 1986, the Company offers a wide range of services in the logistics sector.

Important for shareholders: Pure Hydrogen is not solely dependent on developments in hydrogen. It also offers battery-electric drives and mobile production facilities in shipping containers. Its portfolio also includes complete refueling solutions. This means that the business is healthily diversified. The share price has been moving sideways since June and is valued at less than EUR 30 million.

Ballard Power: The fuel cell dinosaur's second spring?

And what is fuel cell pioneer Ballard Power doing? The stock has recently performed surprisingly well. It has risen by around 200% in the past six months, bringing the Canadian company's valuation back to roughly USD 1 billion. This can likely be attributed to the current AI energy hype, as the operational development does not yet reflect such enthusiasm.

The new CEO, Marty Neese, has announced a comprehensive realignment. The product portfolio is to be streamlined and focused more on current demand. Cost-cutting measures have also been announced. Overall, the Company aims to reduce its burn rate - a necessary step.

In the second quarter of 2025, the loss per share of USD 0.08 was slightly below forecasts. However, this also applied to the revenue of USD 17.8 million, where USD 18.69 million had been expected. The shortfall in revenue was attributed to restructuring efforts and cost reductions.

CFRA analysts subsequently reduced their estimates for the current and coming fiscal years. They expect revenue of USD 90 million for 2025, and for the following year, analysts forecast Ballard Power will generate revenue of USD 116 million.

Hydrogen and fuel cells will ultimately find their niches. However, investors should be cautious about valuations. With its ambitious revenue valuation, Ballard Power joins Plug Power and Bloom Energy. Pure Hydrogen, on the other hand, generates significantly less revenue – likely to be less than AUD 10 million in the current year – but it also carries significantly less weight on the stock market.