Morgan Stanley raises Bloom Energy's target price to $85 in Oracle Corporation's AI data center fuel cell order.

Morgan Stanley significantly raised the outlook for Bloom Energy Corporation (BE.US). Analysts pointed out that with the accelerating growth in electricity demand to support artificial intelligence data centers, the company's potential for rapid growth has significantly increased. Morgan Stanley raised Bloom Energy's target stock price from $44 to $85. The report highlighted that Bloom recently reached an agreement with Oracle Corporation (ORCL.US) to supply fuel cells for its artificial intelligence data centers, which was seen as a key turning point. Oracle Corporation's latest quarter bookings reached $33.2 billion, far exceeding expectations, highlighting the increasing demand for computing power in the market, which further intensifies the need for reliable power supply. Analyst David Arcaro stated, "Bloom has established a very attractive partnership with Oracle Corporation and is one of the few manufacturers able to ramp up production capacity quickly." Morgan Stanley noted that Bloom Energy is one of the few companies able to rapidly expand manufacturing capabilities and deliver fuel cells in a short period of time. With utilities and data centers facing years of delays in accessing the traditional grid, this advantage stands out. Bloom Energy has committed to invest $100 million to double its annual production capacity to 2 gigawatts by the end of 2026, and expects to receive new orders from mega-scale computing companies and hardware manufacturers in the artificial intelligence ecosystem. Morgan Stanley currently forecasts that the company's revenue compound annual growth rate will reach 37.5% by 2030, higher than the previous estimate of 26.9%. In their bullish scenario, the target stock price is raised to $185, reflecting Bloom's potential to play a more important role in the global energy market. In a bearish scenario, if CKH HOLDINGS profit margin underperforms, the stock price could fall to $37. The report mentioned future catalysts including announcements of contracts with mega-scale computing companies, further cooperation with utility companies, and more evidence of increasing grid constraints.