Bloom Energy’s fuel cell technology is ideal for AI infrastructure and recently partnered with Brookfield Asset Management. Despite its high potential, the stock fell 17.3% in November due to its ties to the AI investing theme. However, shares are now recovering and approaching all-time highs in December.

The company’s revenue has surged 129% in the past five years, reaching $1.8 billion in the last twelve months. Last quarter saw a sales increase of 57% year-over-year to $519 million. Bloom Energy also secured a $5 billion partnership with Brookfield Asset Management in the AI field.

Bloom Energy’s stock trades at a $28 billion market cap, making it expensive compared to its $1.8 billion in trailing revenue. With slim gross margins and minimal profitability, the stock is overvalued despite its growth potential in the AI sector. It is advised to avoid purchasing shares even though they are down from all-time highs.

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Read more at Yahoo Finance: Why Bloom Energy Stock Sank 17.3% In November