AI Enabler Blossoms, Wilts And Wavers In Thorny Market. What's An Investor To Do?

News of “productive” talks between the U.S. and Iran lifted the stock market indexes early Monday. Bloom Energy (BE), which continues to explore a volatile buy zone, popped back above its 50-day moving average on the news.

The rebound comes as shares continue to seesaw in and out of buy range since clearing a 147.86 buy point on Jan. 16. Bloom Energy’s high average true range, or ATR, of 9.71% reflects that volatility, reminding investors to keep risk management top of mind.

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Bloom Energy Stock On Leaderboard Watchlist

Based in the heart of Silicon Valley in San Jose, Calif., Bloom Energy focuses on renewables in supplying electricity to residential and commercial customers. But artificial intelligence has emerged as the main driver of growth for the company, helping lift it onto the Investor’s Business Daily Leaderboard watchlist.

Bloom Energy has pivoted to focus on providing power to meet the ravenous demands of AI data centers. The company uses solid oxide fuel cell  technology to deliver so-called on-site power to supplement demands on the centralized grid.

Over the last five quarters, Bloom Energy has generated sales growth ranging from 19% to 60%. In the fourth quarter, revenue rose 36% to $777.7 million.

The company has also fueled a sharp turnaround in bottom-line growth. After producing its first-ever annual profit in 2024, Bloom Energy posted a profit of 64 cents per share in 2025, marking a spike of 129%. Wall Street thinks earnings will surge 102% in 2026 before accelerating to 118% growth in 2027.

How To Handle Changing Stock Market Trends

Sprouting Into Buy Range In Not Exactly Rosy Market

Bouncing back once again on Monday, Bloom Energy trades within a 147.86-155.25 buy zone. That comes after shares fell more than 8% below the initial buy point, further highlighting the stock’s volatility. Such action calls for caution, reminding investors to heed rules for how to buy stocks and when to sell.

While Monday’s rise on the Nasdaq composite and S&P 500 shows promise, plenty of work still needs to get done before a follow-through day could emerge to signal a change in trend. A good first sign is how the S&P 500 just popped back above its 200-day line. The Nasdaq may soon follow suit.

But particularly in such a news-driven environment, head fakes and overreactions — in either direction — are common.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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