Plug Power Inc. saw its shares surge 14.2% to $3.78 on Thursday, a significant move for the hydrogen fuel-cell company as it continues to navigate the path toward profitability. The rally was fueled by a broader wave of enthusiasm in the fuel-cell sector, triggered by Bloom Energy's announcement of a major deal to power artificial intelligence data centers. Additionally, Plug Power's own progress on its Barrow Green Hydrogen project in the UK provided company-specific catalysts.
Bloom Energy's AI Data Center Deal Sparks Sector Rally
On May 20, Bloom Energy revealed a partnership with Nebius to supply fuel cells for the company's AI infrastructure. The deal involves 328 megawatts of installed capacity, expected to be operational this year. Andrey Korolenko, Nebius's chief product and infrastructure officer, highlighted that "power remains a key constraint" for AI operations, and the Bloom systems will be installed "behind the meter," allowing on-site electricity generation without reliance on the public grid. This announcement reinvigorated interest in fuel-cell stocks, lifting names across the sector.
Plug Power's UK Hydrogen Project Hits Key Milestone
Plug Power's own news came a day earlier, with the company confirming that its Barrow Green Hydrogen project in the UK has reached a final investment decision (FID), the formal green light to proceed with spending and construction. The 30-megawatt project will utilize six of Plug's 5-megawatt GenEco PEM electrolyzers to produce green hydrogen. Expected to generate approximately 100 gigawatt-hours of green hydrogen annually, the output will supply Kimberly-Clark's Barrow plant, reducing the site's natural gas consumption by up to 50%. Jose Luis Crespo, Plug's CEO, stated that the project is "moving our largest UK project from award into execution," while Eric Adams, hydrogen director at Carlton Power, called Plug "a strong partner."
Financial Performance and Cash Position
The positive news comes against the backdrop of Plug Power's first-quarter earnings report. Revenue rose 22% year-over-year to $163.5 million, while GAAP gross margin improved to negative 13% from negative 55% a year ago. Crespo noted that the quarter demonstrates progress in "improving the underlying economics" of the business. However, the company posted a net loss attributable to Plug Power of $245.3 million, wider than the $196.7 million loss in the same period last year. As of March 31, Plug held $802.0 million in cash, cash equivalents, and restricted cash, but used $150.0 million in operating cash flow during the quarter.
Investor Caution Amid Profitability Targets
Despite the rally, analysts caution that the stock's gains rest on a thin foundation. Plug Power is targeting positive EBITDAS (earnings before interest, taxes, depreciation, amortization, and share-based expenses) in the fourth quarter, but this goal depends on better margins, lower cash consumption, asset monetizations, and timely project execution. Any delays in hydrogen projects, tighter financing conditions, or rising costs could quickly reverse Thursday's gains.
Market Context and Competitive Landscape
The broader market provided a supportive backdrop, with the Nasdaq Composite edging up 0.09% and the Dow Jones Industrial Average gaining 0.55%. Plug Power's trading volume surged to approximately 115 million shares, well above its 50-day average. Peer Ballard Power Systems also rallied 14.08%, indicating that the fuel-cell trade was not limited to Plug alone. However, Plug's story remains more centered on hydrogen production, electrolyzers, and warehouse fuel-cell systems, rather than confirmed AI data-center power orders, which sets it apart from Bloom Energy's recent deal.
Outlook for Friday's Trading
Friday's session will test whether investors view Thursday's move as a one-day sympathy trade or the beginning of a broader re-rating for hydrogen stocks. With Memorial Day approaching on May 25, market participants will be watching closely for sustained momentum in the sector.
