I Want Exposure to the AI Boom Without Buying Nvidia. Here's Why Bloom Energy Is My Pick.

2 months ago 31

Matt DiLallo, The Motley Fool

Sat, July 25, 2026 astatine 10:20 AM CDT 5 min read

Nvidia (NASDAQ: NVDA) has been 1 of the aboriginal leaders successful capitalizing connected the AI boom. The semiconductor elephantine is presently the largest institution by marketplace headdress astatine implicit $5 trillion. While Nvidia is inactive increasing briskly, -- its gross surged 85% successful its fiscal 2027 archetypal 4th to $81.6 cardinal -- it could look headwinds to aboriginal growth. It's facing expanding competition, including from its customers, galore of whom are processing their ain AI chips.

However, I inactive privation vulnerability to the AI roar without the risks of buying Nvidia astatine its existent level. My prime is Bloom Energy (NYSE: BE). Here's wherefore I similar it implicit Nvidia close now.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

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The Nvidia of information halfway powerfulness

AI chips similar those developed by Nvidia necessitate a monolithic magnitude of powerfulness to tally astatine afloat capableness and forestall overheating. As a result, information centers request entree to ample amounts of unchangeable electricity. Power is becoming a immense bottleneck for information halfway development.

It's a occupation that Bloom Energy is solving. The company's precocious substance cells supply an ultra-reliable, clean, and scalable on-site powerfulness solution. Data halfway developers tin rapidly deploy Bloom's substance cells, enabling them to physique retired AI infrastructure much rapidly.

Bloom Energy is rapidly becoming arsenic captious to AI arsenic Nvidia's chips. Last year, it collaborated with Oracle (NYSE: ORCL) to present onsite powerfulness to its information centers wrong 90 days. The archetypal deployment was truthful palmy (just 55 days to deploy) that Oracle expanded its strategical concern with Bloom Energy to deploy up to 2.8 gigawatts (GW) of its substance cells earlier this twelvemonth to accelerate its AI infrastructure build-out.

The institution besides formed a strategical concern with starring planetary alternate concern manager Brookfield Asset Management (NYSE: BAM) past year. Brookfield initially planned to put up to $5 cardinal successful deploying Bloom's precocious substance compartment exertion astatine AI factories. That concern helped effect the inaugural Brookfield AI Infrastructure Fund, which features Nvidia arsenic a cornerstone capitalist and aims to put up to $100 cardinal successful acquiring AI Infrastructure. Brookfield precocious expanded that concern fivefold to $25 billion. It's portion of Brookfield's strategy to beforehand a caller exemplary for information centers that integrates power, compute, information halfway infrastructure, and capital.

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