FuelCell Energy Could Be an Unexpected Winner of the AI Power Boom

B. Riley analyst Ryan Pfingst recently upgraded his FuelCell Energy (FCEL) rating from “Neutral” to “Buy,” while significantly raising the firm’s price target from $13 to $32. The upgrade follows a new agreement with Fit Energy USA to deploy up to 380 megawatts of power for AI data centers. Fit Energy USA is backed by the investment firm Fit Ventures. The company focuses on delivering power to data centers through fuel cell technology and natural gas turbines. The deal has made Pfingst confident that FuelCell can convert major data center operators as its customers.

The agreement covers multiple power delivery structures, including behind-the-meter solutions, grid-connected models, and microgrids. Unlike FuelCell’s competitors, offering single delivery model, the company’s ability to serve different configurations makes it more versatile. Given the significant variance in size and setup of data centers, this flexibility offers FuelCell a genuine competitive advantage over its peers. The analyst also predicted a positive EBITDA beginning in the second half of 2027. If this comes true, FuelCell’s financial trajectory will shift considerably. On the same day, the Export-Import Bank of the United States approved a $49 million financing package for the company.