People keep asking me why I own Bloom Energy and Nebius, so here's the honest answer. Both of them are a bet on the same idea. The AI buildout has a bottleneck, and it's power. Not chips. Power. Every data center that gets announced needs electricity, and the grid can't deliver it fast enough. Gas turbines take years. Permits take years. These two companies are solving that problem from different angles. Bloom Energy makes fuel cells that sit on-site and generate power directly, in DC, which is what AI chips actually consume. They deliver in months, not years. Every major hyperscaler has now validated their systems. Oracle signed them for up to 2.8 gigawatts. Brookfield put $25 billion of project financing behind them. Last quarter was their first billion-dollar quarter. Revenue up 166%. Full-year guidance doubled. Is it cheap? No. It's trading at over 100 times forward earnings. Part of last quarter's margin came from a one-time tariff refund. And the stock swings hard. It dropped 6% in a day last week on nothing company-specific. That's the price of admission. It's a satellite position for a reason. If it doubles, I'll trim it. If it halves, the core of my account holds up. Nebius is the other side of the same trade. They're a pure AI cloud. They rent GPU clusters to anyone building AI models. Revenue grew 454% last quarter. Roughly $32 billion in contracts signed with Microsoft and Meta. Nvidia owns 9% of the company. That is about as strong a setup as you'll find. The risk is the spending. They're deploying over $11 billion in capex against about $1.4 billion in annual revenue. That's an 8-to-1 ratio. It works as long as the contracts keep converting to cash. Last Thursday the whole sector sold off on exactly that worry, and Nebius fell 7% in a day. My alert line is $209.90 and it closed Friday at $221, so I'm watching it. I'm not reacting to noise. Power is the bottleneck. These are my two ways to own it. Are you bullish on the AI infrastructure buildout? Is so, where do you believe the best opportunities to be had are today?
3,802 views
10 Comments
Marsia @gnomishness · 11d
I agree, and also hold MRVL, LITE, and CRDO silicon photonics stocks. I think of them as green tech that requires a fraction of the energy to move data than copper wiring does, and drastically reduces the amount of energy needed for cooling.
Not Financial Advice @anpc86 · 11d
Solid thesis, the guys on the All-In Podcast have stated numerous times the next thing America is concerned about is catching on grid capacity with China. Essentially chips has been dealt with in terms of trying to get the manufacturers back on American soil. likely going to see short term, mid term, long term options see a run up the fly in the ointment is the bond and interest rate hikes
rowena campbell@sherifatu · 10d
Got it
Retired
@retired · 11d
🐂
See the full comment section 👀Sign up for the full Blossom experience!
