Bloom Energy shows Plug Power how it is done! SMA Solar and RE Royalties shares STRONG!

RE Royalties: Invest in the AI boom in the US

It is no secret that electricity is becoming an increasingly scarce commodity in the US. The operators of data centers for the AI boom are dependent on electricity. The construction of new capacity can hardly keep pace, and then there are the outdated grids. Decentralized sources are therefore in high demand. In conjunction with ever-improving storage technology, solar is also an option. Especially since the capacity can be built relatively quickly.

This is precisely what RE Royalties stands to benefit from. With its focus on renewable energy and storage systems within an innovative royalty model, the Canadian company is a clear beneficiary of the energy demand driven by AI data centers. Nevertheless, the stock appears almost exceptionally inexpensive, and the dividend yield of over 10% is highly compelling. Since mid-December, however, increasingly more investors seem to be recognizing this, and the share price has begun to edge higher. At current levels of around CAD 0.32, it still appears attractively valued.

RE Royalties is currently investing heavily in projects in the US. It was recently announced that a further USD 800,000 will be made available for two portfolios of solar projects for decentralized energy generation. The projects are being developed by Solaris Energy. RE Royalties is paying a total of USD 4.8 million for the acquisition of the royalty on Portfolio 1. Of this, USD 3.8 million has already been paid. The remaining USD 1 million is to follow by the second quarter of 2026. The first portfolio comprises 15 projects in California, Maine, Delaware, New Hampshire, and Colorado, including nine projects under construction, several of which are nearing commissioning. In addition, six further projects are in development. Portfolio 2 is still subject to due diligence. In return for its investments, RE Royalties will receive a royalty as long as the solar projects generate revenue. The projected duration is more than 25 years.

Nick Perugini, CEO of Solaris Energy, commented: "RE Royalties is a valued partner as we expand our platform for distributed energy generation and solar-plus-storage projects and provide reliable, clean energy to the communities we serve."

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Bloom Energy clearly outperforms Plug Power

Plug Power is currently fighting for survival. After numerous announcements by the company and its CEO, as well as the renewed postponement of the extraordinary general meeting, it is difficult to describe the situation any other way. Most recently, Plug CEO Andy Marsh distanced himself from the capital reduction and advised shareholders to only approve the creation of authorized capital. The deadline for doing so has been extended to February 17, 2026. With the authorized capital, Plug Power would have the option of increasing its capital until it reaches break-even point. Plug Power has never achieved this in its history, so skepticism is understandable.

Bloom Energy demonstrates how to monetize the AI-driven power surge. The company also focuses on fuel cells but remains flexible in terms of the input for power generation. Customers can operate their systems using natural gas, biogas, hydrogen, or blended fuels. This flexibility aligns well with the rapidly growing energy demand from data centers, which are currently being built at a record pace and typically rely on natural gas as a primary energy source.

In the fourth quarter of 2024, Bloom Energy generated approximately USD 778 million in revenue and a net profit of USD 1.1 million. Operating cash flow was USD 418 million, exceeding analysts' estimates. The order backlog is also impressive. At the end of 2025, it stood at around USD 20 billion, up around 65% on the previous year. The share price reacted slightly positively. With a price increase of almost 300% in just six months, even larger profit-taking would not have been surprising. Incidentally, Plug Power's share price rose by a modest 29% over the same period and has lost over 95% of its value since the hydrogen euphoria in 2021.

SMA Solar: End of the price rally?

Without much fanfare, SMA Solar has gained around 150% over the past 12 months. This means that the inverter manufacturer has performed significantly better than JinkoSolar, for example. The share price of the world's largest solar group has gained around 40% over the same period.

Jefferies has downgraded SMA Solar's share price from "Buy" to "Hold." Analysts are skeptical about future margin development because the technology group is investing heavily. There are also doubts about the recovery of the Home & Business Solutions division. As part of the update, the price target was lowered slightly from EUR 39 to EUR 37. Berenberg sees the fair value of SMA shares at EUR 36, which means there is little upside potential.

However, SMA Solar's prospects in the field of storage solutions are certainly interesting. Most recently, the company presented the SMA Storage XL Package, a comprehensive solution for commercial customers. It combines powerful battery technology in the 30 kW and 50 kW power classes with intelligent energy management. Sales are set to begin in Germany and other European countries in the first half of 2026.

SMA aims to meet the growing demand for scalable and economical storage solutions in the commercial sector. The goal is to offer companies and installation firms a solution that meets current energy efficiency and cybersecurity requirements while also supporting future business models such as dynamic tariffs and virtual power plants.

Many stocks related to the AI energy boom, such as Bloom Energy, have performed fantastically. The operating outlook remains good, but valuations have already priced in a lot. The situation is quite different for RE Royalties. The company has a risk-diversified business model and is likely to grow strongly in the coming years. In addition, the dividend yield of over 10% is attractive. SMA Solar has performed very well. New areas such as energy storage are exciting, but the stock has often been volatile in the past. Therefore, profit-taking should be an option. Plug Power is speculative at best.