Bloom Energy: The AI Stock Everyone Is Missing

Today we're uh talking about actually one of my main assets that I hold since end of last year. It's an asset that is down about 35%. So it's on a bargain. That's why we thought uh we should cover it. It's Bloom Energy. Bloom Energy is the company that will be or how I envision Bloom Energy, it will be the the core power platform in the AI buildout because what it does it it it brings power fast and secure and with low emissions to wherever the data centers are going to be built and that is the core teases on the name. >> Wow. Okay. Okay. Well, I'm sure a lot of people maybe know it or they don't know it, but let's start with a quick little company snapshot just to understand a little bit more about it. >> Absolutely. So, Bloom Energy is a a fuel cell company. They're producing the boxes that you can see on on on the picture here that you can put wherever you need energy, right? Obviously data center is the big story now but uh they also have hospitals, schools, uh I think one of the big I think it's a a football stadium in the US as well. So basically onsite energy or you can also call it behind the meter energy. So basically energy coming from a source that is not the grid. um and and how they're producing the energies. It's basically with fuel cells and fuel cells is basically an an through an electrochemical process. You have an input material most in in most of the cases it's actually natural gas and you put it through those boxes and then you get energy. Basically that's the really simple non- tech uh explanation of of of what is happening here. And obviously now during the the the AI data center craze around the world, but especially in the US, the demand for those boxes just exploded because um and I have a lot of details on that. But it it just takes years for a data center to connect to with the grid and so you need to look for alternative sources. Now there are other sources as well like gas turbines for instance but bloom is a really viable option and you see from the financial data on the right hand side that as we as we went through the buildout the AI data center buildout uh over those last two years the earnings just exploded. Also the valuation exploded. It's it's definitely not a cheap company. Um but since it's down about 35% from its high I think it's a great time to to talk about it again. So, do they I I I right off the bat I have a question for you. Data centers that can't get access to power, do they what do they do with these these fuel cell boxes? Do they order like a hundred of them? Because from what I understand, like a data center probably needs a lot more power than like a small regional hospital. A hospital needs a lot need a lot of power, but modern data centers I feel like need a lot more power than most other facilities. >> Yeah, absolutely. They need more power and more constant power, right? and and they also have those those spikes in energy use as well. So they have a high constant load with on a high basis spikes right. So, so yeah, it's it's it's basically because of data centers, this this uh company, the story of this company is now uh in the mouth of all the the energy analysts. Um because before that, you you're completely right LG, a hospital, a cool um a soccer stadium, they don't need that much energy, right? um they they used the Bloom Energy boxes as kind of a a fallback option, a safety option when something with the grid was was was not wrong or was wrong, right? Um but now with data centers, the the use case, the the TAM they could address. So the total addressable market for Bloom just exploded. Um and and and that's why also the stock performed so good over the last couple of months. Real world assets like funds, treasuries, and private credit are still running on rails built decades ago. gated, paperwork heavy, slow to settle. Everyone's talking about tokenizing them, but far fewer can actually do it and do it without cutting regulatory corners. Securitize can. It's the SEC regulated infrastructure bringing real world assets onchain. 9 years in native tokenization, not wrapped, backed by Black Rockck, Morgan Stanley, and Kathy Woods Arc Invest, and chosen by the New York Stock Exchange, Van, BNY, and Apollo to do it at scale. It's the regulated bridge between traditional finance and crypto. tokenize the world at milkroad.comsecuritize. >> Right. So these guys have been in business for a long time, but now that solution is high is in high need because of data centers, but for a long time, just to give like the practical use, like you're saying, a hospital that relies on hydro power or some other kind of grid power. Power goes out for 4 hours. They're doing operations and it kicks into a backup generator that is a Bloom fuel cell box that's powered by natural gas because the natural gas lines are intact. Uh hopefully hopefully the grid's not down because of an earthquake, but you know what I mean? It's just it's an alternative source of energy that they've been able to provide. Typically, it sounds like in in in various use cases, but now the demand is enormous because the major bottle one of the major bottlenecks for AI is energy. >> Right. So that's where these guys come in. >> Exactly. And I mean, yeah, you see the charts here, right? Especially the left one. It's the numbers are crazy. And I mean it's 2026 now. The demand for energy is just starting to kick off, right? And these are analysis from different sources. Yes, they vary in in in in kind of the end number, but the the core conclusion is that the number is up and in the right. Right. So the energy demand in the US for data science is around about 2xing by by 2030. Now the core message is that a lot of the power that we need is not yet contracted. So and and and and and you can also connect that back to what what JP Morgan was saying a couple of weeks ago that uh the data centers for 2027 only about 40 or or 50% or so that somewhere there was the number actually kicked off um um constructions. The others are still not um uh they do not have contracted energy. Right? And you see that on the right chart here, a massive amount of energy for the data centers until 2030. We do not know where it's coming from, right? Because the sources of energy are just so exploited and so scarce, especially the grid, right? The grid in data center dense region in the US is already overloaded, right? We we we see the news every day on on on on on on somewhere a local town is pushing back on data center buildout because the the electricity bill is going up, right? And this is the core structural demand driver for solutions that are behind the meter, right? So it's it's not only Bloom Energy winning, it's it's it's a seaman's energy that is producing gas turbines. It's um it's it's gas engines that are everything that is not connected to the grid or batteries, right? Also massive demand driver. Everything that's not connected to the grid is is is is massive in demand because of that uh data center buildout. >> Just going to pause there for a second to point out that the market is showing signs of something kind of different happening and our analysts at Milkro Pro are all over it. They spent the last couple weeks making a lot of trades, getting out of some positions, and then getting into a lot of new ones, getting ready for the next wave of robotics, space, or even kind of picking some different AI winners. If you want to see what they have in their portfolios, what positions they're opening, it's just a dollar in Milkroad Pro at the link below. >> Right. Naturally. Yeah, of course. Yeah, cuz there's just there the need is just so insane and so little of it has been contracted like you're saying and the need is only going to grow that it naturally paints a beautiful bull case for a company like this at alternative power, right? Like just a different source especially and and I think you know the argument you were making on our rollup episode the other day as well and you guys were talking about is that I was asking you guys about policy, right? And that especially in the US it's like that's where the US is falling behind. they just can't can't with China it's like it's not it's not there's way less red tape to go and build a bunch of power facilities and to connect everything and you know [snorts] it's a it's a way more unified whereas in the US you have so many different laws Elon has built a data center on on on a state line so he can get power in one state and run the data center in the other and basically it's a it's a huge issue and that's where Bloom comes in as a a potential strong player where they have a solution that requires way less uh at least one less element of the the political um posturing or or or positioning let's say to to make these things happen. >> Exactly. And what is the thing that data center operators do not have? >> It's time. >> Yeah. >> They they they need to build the data centers as fast as they can. They need to energize the GPUs that they're buying up front for trillions. Right? If you if you accumulate the capex now it's trillions. They need to have the data centers as fast as possible on time. And if you look at the chart in the most data center dense region in the US, it takes about 7 years to connect the data center with the grid. So you build it and then you need to wait seven years until you get the energy. >> Yeah, >> that's a pretty long time. And in seven years from now, we're envisioning a an AI native society, right, with humanoids with patient. >> From what I understand from you guys, in seven years, like we won't even we won't even having this podcast. It's going to be robots talking on our behalf. [laughter] >> I guess I'll never I'll make my last meal and I got to have robots doing it for me and feeding me in my robot chair or something like that. Anyways, 7 years is a seven years in in by today's standards feels like a really long time compared to the the speed at which even the models are are you know the the the frontier and also the Chinese models are moving. >> Exactly. And one of the strongest arguments of Bloom Energy is that they can bring energy to whatever site also a data center within 60 to 90 days and they've proven it. They uh they signed a deal with Oracle. It's one of the largest customers and there they brought energy online in round about 60 days. So there 60 days versus 7 years. Uh it's pretty pretty strong argument for Bloom Energy, right? So time to power is one of their their biggest USPS. >> Oh my god, man. Yeah, that's a that's an that's an 98% time saved, right, of of how long it would take for the other ones. So, can they So, my question for you at this point and and I feel like this will lead into your next slide is and it's kind of what I asked earlier is is can Bloom provide the same amount of power that's needed as being connected to the grid, right? Because it's like it just it sounds like what they make is small compared to being connected to the grid, but maybe that's not true. >> Want insights on what's moving crypto markets and how we're [music] trading each event? Subscribe to our channel and join the Milkro Daily and Pro newsletters and start investing like the top 1%. [music] This show is for educational purposes only. Nothing we say is financial advice. Investing is risky. Never invest more than you can afford to lose.