Shares of FuelCell Energy (FCEL) surged roughly 14% by midday on Tuesday, recovering from a Monday decline as traders positioned for what could be a volatile earnings report from the clean-power company. The stock climbed to $24.31 on the Nasdaq, with a trading range of $20.86 to $25.72 and volume of approximately 7.9 million shares. The company's market capitalization now stands near $1.17 billion.
The rally comes less than a week before FuelCell Energy reports its fiscal second-quarter results before the market opens on June 8. Management will host a conference call at 10 a.m. Eastern to discuss the numbers and provide a business update. Options markets are pricing in a 17% swing in the stock around the earnings release, according to Bloomberg data cited by Investing.com. Options allow traders to lock in prices for hedging or speculating on price moves.
Tuesday's bounce back follows a 1.6% drop on Monday, when the stock closed at $21.31 and underperformed the broader market. The Nasdaq Composite rose 0.42% that day. Despite the recent volatility, FuelCell Energy shares are drawing attention from investors seeking exposure to artificial intelligence power demand, not just clean energy. Other fuel-cell stocks also rallied: Bloom Energy jumped nearly 10%, Plug Power gained about 4.2%, and the iShares Global Clean Energy ETF added roughly 1.7%.
Bloom Energy's rise has been particularly notable, with The Wall Street Journal reporting Monday that the company is moving from the Russell 2000 to the Russell Top 200, reflecting its rally on growing demand for fuel cells to power data centers. FuelCell Energy is positioning itself in a similar narrative. In its first-quarter report in March, the company posted revenue of $30.5 million, up 61% year-over-year, while its net loss narrowed to $26.1 million from $32.4 million a year earlier. CEO Jason Few has highlighted the "defining opportunity of the AI era," noting more than 1.5 gigawatts in new commercial proposals related to data-center demand.
The company's fuel-cell systems generate electricity through an electrochemical process, producing power on-site with lower emissions than traditional fossil-fuel plants. This technology is being marketed to data centers, factories, and utilities as a cleaner alternative for behind-the-meter power generation. On May 21, FuelCell Energy announced the addition of John Livingston, a cybersecurity entrepreneur and former McKinsey adviser, to its board. Livingston described the company as "the right place at the right time" for targeting AI economy power needs.
However, risks remain. FuelCell Energy's backlog fell 10.8% from a year earlier to $1.17 billion at the end of January, and the company continues to operate at a loss. The current optimism may be outpacing signed contracts. If the June 8 earnings report does not show progress in converting proposals into firm deals or if cash burn worsens, Tuesday's rally could prove short-lived. For now, the stock is moving more on hopes for future data-center power demand than on confirmed business wins. Next week's earnings will reveal whether that optimism is translating into tangible results.
