Well, one overlooked clean energy stock just got the limo treatment, the spotlight, and a full-blown standing ovation from J.P. Morgan… while most of its sector peers are still waiting in line at coat check. That stock is Bloom Energy. And if you’ve been sleeping on it, now might be the time to pay attention.

On Wednesday, Bloom’s stock spiked nearly 17%, hitting its highest level since January. It wasn’t because of an earnings beat or some viral press release… no, this glow-up came courtesy of two powerful forces: J.P. Morgan and Donald J. Trump. Let that combo marinade for a second.

Here's what happened: J.P. Morgan upgraded Bloom from “Neutral” to “Overweight”… and they didn’t stop there. They launched the price target into orbit, hiking it from $18 to $33. That’s an 83% bump. You don’t do that unless you suddenly see something big on the horizon.

And that “something big” is what Trump, in his very Trumpy way, called “one big, beautiful bill.” Hidden inside this July 7th executive order is a massive win for fuel cell makers like Bloom. Specifically, the 48E Clean Electricity Investment Tax Credit, which… plot twist… now includes fuel cells. That wasn’t the case before. Fuel cells were basically left standing in the rain while solar and wind danced inside. But now, Bloom’s tech is back on the guest list.

What does this mean in plain English? Pricing power. Bloom now has the leverage to walk into data center negotiations with a little more swagger. The tax credit means customers can afford to pay more… and Bloom gets to keep more of it. 

J.P. Morgan’s analyst Mark Strouse laid it out: the tax credit improves margins, boosts revenue, and makes Bloom more competitive against old-school gas turbines, which are currently getting more expensive and harder to source. In other words, Bloom just became the more attractive option… and not just on ESG scorecards. And this doesn’t appear to be a short-term sugar rush. J.P. Morgan sees this playing out in fiscal year 2026, when the tax credits kick in and the company starts showing off its full pricing potential.

Their new forecast is $2.21 billion in revenue and $420 million in EBITDA. That’s up from previous estimates of $2.04B and $275M. The numbers are getting thicker, margins are improving, and factory utilization is expected to ramp up as more orders roll in. And for what it’s worth, even after the recent rally, the stock is still trading at around 15x forward EBITDA… which is below its one-year average of 18x and well under the three-year norm of 22x. So, it’s still reasonably priced if you believe in the growth story.

But hold up… not everyone is buying into the hype. While Wall Street was busy toasting Bloom’s glow-up, one major investor made a quiet exit. SK Ecoplant, a South Korean firm that had been one of Bloom’s larger backers, sold off half of its stake shortly after the upgrade. No dramatic press release. No fire drill. Just a calculated trim of exposure… even as analysts were popping champagne over the 48E tax credit.

What does that mean? Hard to say for sure. It could be portfolio rebalancing, profit-taking after the spike, or a sign that some investors want to wait and see how the tax credit actually gets implemented. Either way, it’s a reminder: not everyone is on the same page… and even bullish stories come with mixed signals.

Back to the bulls for a second: Another big angle here is the short squeeze potential. Right now, 24% of Bloom’s float is sold short. If the stock keeps moving up, shorts may have to cover quickly… and that could create a huge rally.

Still, this wouldn’t be a real stock story without some fine print. The tax credit still has some unknowns. Bloom’s CFO seat is still empty, which doesn’t exactly scream “ready for primetime.” And some customers might delay orders until 2026 when the credits kick in… potentially slowing near-term momentum.

But big picture… Bloom just moved from “promising tech” to “legit contender.” Between the policy boost, J.P. Morgan’s nod of confidence, and the potential for a short squeeze, you should keep an eye on this one over the next few weeks.

At the time this article was published Stocks.News does not hold positions in companies mentioned in article.