FuelCell Energy stock surges on data-center power infrastructure deal.

FuelCell Energy's stock surged 24 percent to $24.45 in midday trading on Friday, marking a significant milestone for the clean energy firm. The rally contrasted sharply with Bloom Energy, which tumbled 13 percent to $268.65, highlighting a rare split between two prominent sector players.

The catalyst behind FuelCell Energy's jump was concrete: the company finalized a major strategic agreement to supply baseload on-site power to data centers. Under the contract with Fit Energy, FuelCell Energy will deliver up to 380 megawatts of clean energy. The partnership addresses the rising electricity demands of artificial intelligence infrastructure.

The initial phase includes a deposit from Fit Energy for 30 megawatts, with deliveries scheduled to commence in late 2026. The contract also features warrants tied directly to future deployment milestones, ensuring a near-term revenue trigger and potential upside as operations scale.

The agreement validates FuelCell Energy's strategic pivot toward supporting AI infrastructure. The company holds a commercial pipeline of approximately 4 gigawatts, with about 90 percent directly tied to data center projects. Modern data centers require immense amounts of stable power to run advanced computing workloads.

To support this expansion, FuelCell Energy plans to spend between $200 million and $275 million upgrading its Torrington, Connecticut facility, aiming to push total manufacturing capabilities to 500 megawatts annualized capacity.

Canaccord Genuity recently upgraded the stock to a Buy rating following the Q2 FY2026 financial report, establishing a $30 price target. Analysts cited the company's excellent positioning within the competitive AI data center power market.

Chief Executive Officer Jason Few described the corporate direction as a crucial expansion, framing the core commercial strategy as "extending the grid to data centers"—a narrative aligned with the massive infrastructure spending currently driving Wall Street.

Over the past year, FuelCell Energy shares have gained 307 percent. Bloom Energy, despite holding a $6 billion product backlog, faced heavy selling pressure following a stunning 1,331 percent annual run. Market experts noted the company traded at an elevated valuation of 156 times forward earnings, leaving it highly exposed to profit-taking.