I Wouldn't Touch This Hydrogen Stock Yet -- Here's the One Number I'm Waiting On

Bloom Energy, a company specializing in hydrogen fuel cells, is currently facing a surge in demand. This increase is primarily attributed to the rapid expansion of artificial intelligence infrastructure. The company's products are being utilized to address the inadequacy of the electric grid in managing electricity demand. Bloom Energy's fuel cells offer an off-grid power solution, enabling AI data centers to operate immediately without the need to wait for the local electric utility to connect them to the grid.

However, despite the positive outlook, the author expresses reservations about investing in Bloom Energy at present. The reason for this cautious approach is the fact that the company's backlog, which tracks potential future orders, has not been updated to reflect the significant new customers acquired since the start of the year. Consequently, the backlog could be higher now than it was eight months ago.

The author emphasizes that while Bloom Energy's hydrogen fuel cells are gaining traction due to the growing need for off-grid power, the company's hydrogen stock may not be a suitable investment at this juncture. The primary factor influencing this assessment is the backlog figure, which, although substantial, has not yet been adjusted to account for the recent influx of new customers.