FuelCell Energy, Inc. (NASDAQ: FCEL) saw its stock price surge 37% on Wednesday, trading near a one-year high at $13.64 in premarket trading on Thursday. The rally comes as investors increasingly bet on fuel-cell technology to meet the surging power demands of AI data centers.
The broader fuel-cell sector also benefited from strong results at rival Bloom Energy. Bloom reported first-quarter revenue of $751.1 million, a 130.4% year-over-year increase, and raised its 2026 revenue growth target to about 80% from roughly 60%. The company also announced a major deal to supply up to 2.45 gigawatts of fuel cells to Oracle's Project Jupiter AI data center campus in New Mexico.
FuelCell Energy, based in Danbury, Connecticut, has been positioning itself as a key player in the race to power AI data centers. In March, the company introduced a 12.5-megawatt standardized power block designed specifically for data centers and announced plans to more than triple manufacturing capacity at its Torrington, Connecticut plant. The company also reported a 275% jump in its business development pipeline since February 2025, driven primarily by data center demand.
CEO Jason Few emphasized speed as a critical factor for data center clients, noting that with AI pushing grid capacity, customers want to know 'how quickly they can get it.' Eric Strayer, senior vice president and global sales chief, added that buyers are looking for 'fast, phased deployment.'
Despite the positive sentiment, FuelCell's financial results remain mixed. For the January quarter, the company reported revenue of $30.5 million, a 61% increase year-over-year, but recorded a gross loss of $5.9 million and a net loss of $26.1 million. The company's backlog slipped to $1.17 billion, down 10.8% from the previous quarter.
Analyst sentiment is cautious. According to MarketBeat, FuelCell carries a consensus 'Reduce' rating, with seven analysts recommending Hold and two recommending Sell. The average price target stands at $8.24, well below the current trading level, suggesting the stock could be vulnerable if data center projects fail to materialize as contracts.
FuelCell's cash position was $379.6 million as of January 31, but a significant portion came from share issuance. The company raised approximately $54.9 million in net proceeds last quarter by selling about 6.4 million shares through its open-market agreement.
For now, traders are betting on potential. FuelCell offers a smaller, more volatile bet on AI-driven power shortages. The key challenge ahead is clear: the company must convert its pipeline into actual orders, control manufacturing costs, and demonstrate that losses are shrinking, rather than simply riding the sector's buzz.
