A pre-earnings rally in fuel cell stocks is unwinding fast, and the steepness of each company’s drop reveals exactly how exposed it is to the AI data center trade that drove the run in the first place.
Power stocks that rallied on the AI data center trade are reversing, and the selling is landing hardest on the fuel cell makers most exposed to that expansion. Bloom Energy (NYSE:BE) stock leads the retreat as caution builds ahead of its third-quarter 2026 report. In afternoon trading, Bloom Energy stock is trading at $218.09, down 9% and giving back the gain it posted on October 21.
Meanwhile, shares of FuelCell Energy (NASDAQ:FCEL) are at $12.36, down 6%, a decline that trails the slide in Bloom Energy stock yet still outpaces the hydrogen sector’s broader drop. Plug Power (NASDAQ:PLUG) stock is trading at $1.37, down 3%, a far softer loss than Bloom Energy stock or FuelCell stock is taking. How far each company leans on data center demand maps closely onto the size of its drop.
The Global X Hydrogen ETF (NASDAQ:HYDR) is down 4%, sitting between the drops in FuelCell stock and Plug Power stock. The selling is far smaller for the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), which is down 1%. That spread shows the hydrogen and fuel cell corner absorbing a much heavier dose of pressure than the broad market.
Bloom Energy Gives Back Its Power Bottleneck Rally
Bloom Energy stock closed sharply higher on October 21 after comments from technology leaders that power has become a major constraint for AI data centers lifted power stocks. Coming on top of a large run this year, that move leaves the company entering its third-quarter report with expectations already elevated, and a stretched setup like that leaves little cushion if the numbers fall short of the optimism built into Bloom Energy stock.
Technology stocks are falling broadly, led by chipmakers, and that weakness is bleeding into the power names tied to AI spending. Chip demand and data center electricity needs stem from the same expansion, so a selloff in semiconductors can pressure Bloom Energy stock as well. Pre-report caution and a soft tech backdrop are hitting at once, which helps explain the size of the reversal in Bloom Energy stock.
Data Center Exposure Sets the Pace of Selling
Bloom Energy sells fuel cell systems that data centers use for on-site power, which places it closest to the AI demand story, while FuelCell builds larger utility-scale fuel cell plants and Plug Power is weighted toward hydrogen fuel and equipment for warehouse and industrial users. Those business lines track the order of the declines almost exactly, with the most data center heavy model taking the deepest hit.
For Bloom Energy, the bull case is direct exposure to data center demand, the force behind its large run this year, but that same concentration magnifies selling when AI sentiment cools off. For FuelCell, a data center-heavy pipeline faces a recent earnings miss; for Plug Power, narrowing losses face weaker AI ties.
Bloom Energy’s Earnings Test Sets the Next Move
Bloom Energy’s third-quarter report will show whether its margins are keeping pace with data center demand. Results pairing margin gains with demand strength could rebuild the momentum Bloom Energy stock carried into October 21. Any sign of margin pressure could extend the pullback, given the large run this year.
An open variable for FuelCell stock and Plug Power stock is the direction Bloom Energy’s results set for the broader hydrogen group. Chipmakers matter here too, since a rebound in semiconductors could ease pressure on the power names tied to AI spending. Firmer tech conditions could give the Global X Hydrogen ETF room to recover alongside its holdings.
One report now carries the near-term direction for Bloom Energy, FuelCell and Plug Power shares alike. Volatility like this can cut both ways once the numbers land. Keeping one’s exposure smaller could make sense until Bloom Energy’s earnings report is released.
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Source: 247wallst.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
