Bloom Energy Corporation (NYSE: BE) is highlighted as one of the AI stocks investors are closely watching. BMO Capital analyst Christopher Dendrinos reiterated a Market Perform rating with a $136 price target on January 9.

American Electric Power exercised its option to purchase 900MW of solid oxide fuel cells from Bloom Energy, following an initial agreement in 2024 for 100MW. AEP also signed a 20-year PPA for fuel cell-generated power at $2,950 per kilowatt.

This deal marks Bloom Energy’s first multi-hundred megawatt deployment, yet BMO believes the revenue opportunity without an additional service contract falls below its base-case assumptions. AEP will utilize the majority of the 900MW balance for a data center project in Wyoming.

Bloom Energy develops solid-oxide fuel cell systems for on-site power generation, catering to the energy demands of AI data centers. While BE shows investment potential, other AI stocks may offer greater upside potential with less downside risk.

For more insights on AI stocks, check out “11 AI Stocks on the Market’s Radar” and “10 AI Stocks Gaining Attention on Wall Street.” Disclosure: None.

Read more at Yahoo Finance: BMO Reiterates Market Perform on Bloom Energy (BE) After Grid-Scale Fuel Cell Deal