Shares of Bloom Energy sank this week in the direction of its latest earnings report; Then he jumped

Hydrogen fuel cell manufacturer’s actions Blooming energy (BE 6.46%) were down 10% for the week at the market close today, just before the company released its second-quarter results. The only news from the company this week ahead of its quarterly report was the announcement of a new, more efficient fuel cell it’s offering to help power the growing data center server market.

Power needs are expanding as data centers are built to house servers used for artificial intelligence (AI) computing needs. But this market is not yet contributing to Bloom Energy’s bottom line.

Are data centers Bloom’s new niche market?

Bloom’s efficient new fuel cell offering combines much of what data center operators are looking for. While it is highly efficient and carbon-free, using 100% hydrogen, it also offers the ability to run on mixtures of natural gas and hydrogen.

But markets have been in risk-off mode for much of this week, and aggressive growth stocks like Bloom Energy have been caught in the selloff. But Bloom has already created some businesses to power the data centers, and there could be more.

In its second quarter report, the company reported r$335.8 million, up 11.5% year over year. CFO Dan Berenbaum said: “We achieved record revenue and non-GAAP profitability for the second quarter and strengthened our balance sheet by issuing 3% convertible green notes. We are confident in our commercial pipeline and reaffirm our prior 2024. financial guidance”.

The company also recently announced a deal with private AI data center company CoreWeave to provide power for a data center in Illinois. The company will also provide fuel cells for power supply Amazon Web Services (AWS) data centers in California.

Investors initially cheered Bloom’s latest quarterly report. Shares rebound after market hours in response to the results. This makes sense with record second quarter revenue combined with increased profitability in the form of rising gross margins. With electricity demand continuing to grow, Bloom appears to be in a good position, particularly in the niche data center market.