What Makes Bloom Energy (BE) a Compelling Investment Bet?

What Makes Bloom Energy (BE) a Compelling Investment Bet?

Thu, September 3, 2026 at 4:29 PM GMT+3 3 min read

• BE -0.56%

Sands Capital, an investment management company, released its "Sands Capital Select Growth Fund" Q2 2026 investor letter. The letter can be downloaded here. Select Growth Fund targets U.S. businesses driving significant structural change through disruptive innovation. The fund returned 23.2% in the quarter, outperforming the Russell 1000 Growth Index's 16.7% gain. U.S. large-cap growth equities rebounded sharply, driven by improving corporate fundamentals and renewed investor confidence in AI, despite geopolitical uncertainties. However, the market's gains were narrow, concentrated among AI beneficiaries. The portfolio's success stemmed from strength in AI infrastructure holdings, especially memory and storage, supported by better pricing and tightening supply. As AI development advances, continuous demand for compute capacity is expected, prompting investments in memory, CPUs, AI chips, and semiconductor manufacturing to address emerging bottlenecks essential for scaling AI. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, Sands Capital Select Growth Fund highlighted Bloom Energy Corporation (NYSE:BE) as a new holding. Bloom Energy Corporation (NYSE:BE) designs and manufactures solid-oxide fuel cell systems for clean, reliable, on-site power generation. On September 2, 2026, Bloom Energy Corporation (NYSE:BE) closed at $217.28 per share. Over the past month, Bloom Energy Corporation (NYSE:BE) declined 5.10%, but its shares are up 295.70% over the past year. Bloom Energy Corporation (NYSE:BE) has a market capitalization of $78.51 billion, and its stock has traded within a 52-week range of $52.00 to $351.28.

Sands Capital Select Growth Fund stated the following regarding Bloom Energy Corporation (NYSE:BE) in its Q2 2026 investor letter:

"Bloom Energy Corporation (NYSE:BE) added exposure to power, another increasingly important constraint in the AI buildout. The company's solid oxide fuel cells provide baseload, on-site power that can be deployed in modular units, making the technology well suited for data centers facing grid interconnection delays, limited turbine availability, and rising power costs. We believe Bloom has crossed from an emerging technology into a more credible data center power solution, supported by Oracle's decision to deploy up to 2.8 gigawatts of Bloom's fuel cell technology at its New Mexico facility. In our view, Bloom's faster time to power, lower water requirements, modular design, and potential cost competitiveness versus gas turbines could meaningfully expand its addressable market."

Bloom Energy Corporation (NYSE:BE) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 116 hedge fund portfolios held Bloom Energy Corporation (NYSE:BE) at the end of the second quarter, up from 91 in the previous quarter. While we acknowledge the potential of Bloom Energy Corporation (NYSE:BE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we discussed Bloom Energy Corporation (NYSE:BE) and shared the two AI stocks billionaires were buying. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.