When looking for stocks to buy, many investors are turning to the artificial intelligence (AI) sector for the next big thing. But there are plenty of companies that could benefit from the anticipated AI boom, even though they’re not directly involved.
For example, the expected growth in energy-hungry data centres could be stalled by a lack of access to on-site power. Innovative companies that are able to come up with clever solutions to overcome the lack of suitable energy infrastructure could be among the biggest winners from AI.
And judging by the Bloom Energy (NYSE:BE) stock price, investors appear to think its technology could be the answer.
Why?
Bloom Energy’s a supplier of solid oxide fuel cells (SOFCs) and solid oxide electrolyser cells (SOECs), which can generate clean electricity without the need for combustion. These can be deployed more quickly than large-grid infrastructure works.
Excitement surrounding the company’s pushed its stock price nearly 800% higher since July 2025.
Earlier this month (July), it announced it had expanded its “preferred provider” partnership with Brookfield, to supply power to the asset manager’s AI data centre assets. Under the arrangement, Brookfield will increase its investment from $5bn to $25bn. Bloom Energy reported a profit of $72.8m in 2025.
Of course, there’s always a risk that new technology won’t live up to expectations. And its share price can be incredibly volatile in both directions.
However, due to its huge potential, it might appeal to those who are comfortable with a high-risk investment. But it’s valued at 38 times 2025 revenue and his may be a sign that investors have already priced in much of the stock’s potential.
Personally, I think there’s a better alternative to consider closer to home.
A different approach
Ceres Power Holdings (LSE:CWR) also sells SOFCs and SOEC stacks. Don’t get me wrong, I’m not saying its stock is cheap – the company’s valued at 30 times 2025 turnover — but it operates a business model that, in my opinion, has a significant advantage over that of Bloom Energy’s.
Ceres Power plans to scale-up its operations by licensing its technology to third parties. This capital-light approach transfers the normal risks associated with the manufacturing process to other companies. It means it can achieve a much higher gross profit margin — 70% in 2025, compared to Bloom’s 29%.
However, it’s still loss-making and recently surprised investors by announcing a £100m rights issue. This is a reminder that the company’s still in its infancy. Other fund-raising initiatives can’t be ruled out.
But it’s entered into licensing contracts with Doosan (South Korea), Delta Electronics (Taiwan), Denso Corporation (Japan), and Weichai Power (China), all of whom see fuel cells as massive revenue earners over the coming decades. If their predictions prove right, Ceres Power will receive massive royalties. In addition, the group’s entered into strategic partnerships with other blue-chip companies.
Personally, I think SOFCs and SOECs have great potential, especially if data centres take off as many are predicting. That’s why I think Ceres Power could be a stock to consider. However, I admit there are other less risky opportunities available at the moment.
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James Beard owns shares in Ceres Power Holdings plc.
