FuelCell Energy Rides the AI Current — But the Backlash Was Just as Sharp

The race to power artificial intelligence’s insatiable energy appetite has turned fuel-cell stocks into one of the market’s most speculative trades. A blockbuster partnership between rival Bloom Energy and investment giant Brookfield — which quintupled available capital for fuel-cell projects — sent a wave of euphoria through the sector. FuelCell Energy, a long-established player in the space, caught the full force of that tailwind.

Shares of the Connecticut-based company surged to a fresh 52-week high on Wednesday, touching €34.18 in early trading, according to one data feed, while another source puts the intraday peak at €34.14. That capped a blistering seven-day rally of roughly 80%. But the euphoria was short-lived: by midday, the stock had given back all those gains and more, suffering a double-digit percentage drop that left investors nursing whiplash.

The violent reversal is hardly a surprise given the stock’s current volatility. With an annualised swing of around 178% — one estimate puts it at 180%, another at 176% — FuelCell Energy is one of the wildest rides in clean-energy equities. Technical indicators are flashing red: the relative strength index sits at 75.7, firmly in overbought territory, and shares trade more than 100% above their 50-day moving average of €16.91. Since the start of the year, the stock has climbed nearly 390%.

Behind the speculative frenzy lies a genuine demand story. FuelCell Energy’s project pipeline swelled 250% quarter-over-quarter to a staggering 4 gigawatts, with nearly 89% of those projects tied to data centres powering artificial intelligence. The company’s carbonate fuel cells are well suited to providing the steady baseload power that high-performance computing clusters require, positioning it as a decentralised alternative to the grid.

To capitalise on that demand, FuelCell Energy inked a supply agreement with Fit Energy for up to 380 megawatts of green electricity for data-centre operations, with 30 MW slated for near-term delivery. The company is also ploughing $200 million into expanding its Torrington manufacturing facility, part of a broader plan to lift production capacity to 500 MW — a project that carries a total price tag of up to $275 million.

Should investors sell immediately? Or is it worth buying Fuelcell Energy?

Overseas expansion is picking up pace as well. The U.S. Export-Import Bank approved a $49 million financing package in late June to support the export of fuel-cell equipment to South Korea. A first tranche of $22 million has already been disbursed to customer Gyeonggi Green Energy, and a second payout is expected in October. Further out, a third tranche tied to capacity expansion is planned for the fourth quarter of 2026.

Yet the growth story is still being written at a cost. Second-quarter revenue slipped 5% to $35.6 million, while the net loss more than doubled to roughly $78 million. The order backlog edged down to $1.14 billion, suggesting that converting the massive pipeline into signed contracts remains a work in progress.

Analysts are divided on where the shares go from here. B. Riley rates the stock a Buy with a $32 target. Jefferies sees fair value at $24, while UBS counsels a Hold at $22. The wide range reflects the uncertainty between the AI-driven opportunity and the still-unproven path to profitability.

For investors, the next milestones to watch are the October EXIM disbursement and the subsequent financing round in late 2026. Whether FuelCell Energy can sustain its momentum — or whether the overbought conditions will force a deeper retracement — is a question only the market’s next ride will answer.