Bloom Energy partners with Quanta to meet artificial intelligence power needs

SAN JOSE, Calif. – Bloom Energy (NYSE: NYSE:), a company specializing in solid oxide fuel cell technology, announced a partnership with Quanta Computer Corporation (TW: 2382.TW), a leading electronics manufacturer in Taiwan. . The collaboration aims to meet the power needs of Quanta's manufacturing expansion in Fremont, California, by implementing a microgrid solution that bypasses the delays of traditional utility grids.

Quanta Computer, known for producing advanced electronics used in PCs and cloud services around the world, is responding to the growing demand for artificial intelligence technology, which requires massive computing power. The local utility's timeline to provide the necessary power for Quanta's expansion was extended by several years, prompting a search for alternative energy solutions.

The collaborative solution involves a fully islanded microgrid designed to operate independently of the utility grid, providing Quanta with a reliable and self-sufficient power source. The microgrid will ensure Quanta operates 24/7, 365 days a year, allowing Quanta to maintain a competitive advantage in Silicon Valley's fast-paced market.

KR Sridhar, founder, chairman and CEO of Bloom Energy, emphasized the importance of the project and said the microgrid demonstrates the adaptability of the Bloom Energy Server platform in an era where the artificial intelligence boom is driving growing power demand. Bloom Energy's fuel cell technology provides a scalable and environmentally friendly alternative to traditional utility infrastructure that is struggling to keep up with rapid growth.

This move not only addresses Quanta's current energy needs, but also reflects growth trends in the technology sector. As applications driven by artificial intelligence continue to expand, the demand for energy-intensive computing resources continues to increase.Bloom Energy's Energy Server fuel cell technology offers scalable, rapidly deployable, combustion-free and fuel-flexible options compared to traditional power sources

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Investment Professional Insights

Investors and stakeholders may find the following InvestingPro insights particularly relevant in light of Bloom Energy's (NYSE: BE) recently announced partnership with Quanta Computer. Bloom Energy has a market capitalization of $2.49 billion, reflecting the company's size and scale in renewable energy, according to instant data from InvestingPro. Despite the challenges, the company's revenue grew 11.2% in the last 12 months ended in the fourth quarter of 2023, indicating a positive sales trajectory.

One of InvestingPro's tips highlights that Bloom Energy's net profit is expected to grow this year, a promising sign for investors looking for improving profitability. Additionally, analysts also noted the company's significant returns last week, with a total price return of 13.73%. This may indicate optimism in the market following the announcement of strategic moves such as the partnership with Quanta.

However, it's also important to note that Bloom Energy has a high price-to-book ratio of 5.0, which suggests the stock may be highly valued relative to the company's book value. This may be a point of consideration for value-oriented investors. Furthermore, with a price-to-earnings (adjusted) ratio of -11.2, the company's current profits don't justify its share price, which is typical for a company that didn't make a profit in the last twelve months.

For those interested in a deeper dive, there are additional InvestingPro Tips that discuss various aspects of Bloom Energy's financial health and market performance.Readers can access these insights and use coupon codes by visiting PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount. This offer provides a wealth of information to help investors make more informed decisions.

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