Key Points

Bloom stock has outperformed Nvidia over the past five years.
Although Bloom has boosted its net margins, it falls short of Nvidia's profitability levels.
Nvidia appears undervalued while Bloom trades at a premium valuation.
10 stocks we like better than Bloom Energy

Bloom Energy (NYSE: BE) stands out as one of the top-performing energy stocks in 2026, showing little indication of slowing momentum. Shares of this AI-focused power provider have climbed nearly 200 percent and expanded ninefold since last July.

Placing it alongside AI leader Nvidia (NASDAQ: NVDA) highlights the rapid pace of Bloom's rise. Over five years, an investment of 10,000 dollars in the chip specialist would trail the same amount placed in the fuel cell firm by roughly 1,500 dollars.

Data by YCharts

Yet this performance comparison reveals little about the underlying operations. A closer look confirms that Bloom does not represent the next Nvidia, which carries implications for its earnings outlook.

Image source: Bloom Energy.

What Bloom is not

Bloom, similar to Nvidia, benefits from artificial intelligence expansion where power constraints open doors for its fuel cell technology. Both firms contribute meaningfully to AI progress, but their profit profiles differ sharply.

Over the trailing twelve months, Nvidia posted around 159 billion dollars in net income compared to Bloom's approximate 6 million dollars. Nvidia holds a net profit margin near 63 percent while Bloom's sits around 0.25 percent.

These represent distinct models, with one asset-light and the other asset-heavy. Nvidia's gains stem from strong revenue increases paired with robust profitability. Bloom has grown its revenue but has not yet shown earnings strength to support comparable long-term investor interest.

This gap appears in valuations. Nvidia trades at about 23 times forward earnings, which seems modest. Bloom commands roughly 114 times the same measure, an elevated multiple for a firm that only recently turned profitable.

What Bloom is

Based solely on share performance, Bloom has already achieved Nvidia-like results. Investors must evaluate whether Bloom can replicate Nvidia's consistent strong quarterly earnings.

One constraint involves deployment limits. Bloom can install only a certain number of fuel cell units each year. While U.S. data center power needs may hit 150 gigawatts in two years per Bloom projections, nearly double current figures, the company can currently handle 1.5 to 2 gigawatts annually. Expansion plans exist, yet capacity remains restricted for now.

Bloom's valuation looks excessive at present, prompting a personal reduction in exposure. Concerns center on market misreading of operational limits that might trigger a sharp pullback. It does not rank as a top pick currently, though monitoring continues for a better entry point later.

Should you buy stock in Bloom Energy right now?

Before purchasing Bloom Energy shares, review this:

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Steven Porrello holds shares in Nvidia. The Motley Fool maintains positions in and endorses both Bloom Energy and Nvidia. The Motley Fool maintains a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.