Why Bloom Energy Stock Plunged Over 20% This Week

Core Viewpoint - The recent release of a low-cost AI model by Chinese start-up DeepSeek has raised concerns among investors, leading to a significant drop in Bloom Energy's stock price, which fell over 20% in a week [1][4]. Group 1: Stock Performance - Bloom Energy's stock experienced a decline of over 20% through Friday afternoon, with a notable drop of more than 25% in a single day amid a broader tech sector downturn [1][3][4]. - Analysts have mixed views on Bloom Energy, with some raising price targets while others, like Bank of America, lowered their target from $20 to$18 [2][3]. Group 2: Market Impact - The introduction of DeepSeek's AI model is perceived as a potential threat to the U.S. data center industry, which is a critical market for Bloom Energy's solid oxide fuel cell systems [4][5]. - Bloom Energy's growth is expected to be driven by demand from data centers, particularly due to the AI and cloud computing boom, with major clients including Intel and Google [5][6]. Group 3: Future Outlook - Bloom Energy projects revenue between $1.4 billion to$1.6 billion for 2024, an increase from a record $1.3 billion in 2023, indicating potential for growth despite current market concerns [7]. - The company's management is expected to address the impact of DeepSeek on the AI data center industry during the upcoming Q4 earnings call [6][7].