FuelCell Energy (NASDAQ: FCEL) has been one of the month’s hottest stocks, surging approximately 80% in April. While the immense power needs of AI data centers are dominating energy headlines, FuelCell’s recent introduction of a new power block is turning heads as one viable solution.
In late March, FuelCell introduced a scalable 12.5-megawatt (MW) power block that can provide continuous, on-site power for data centers. This is an important piece of technology, as grid constraints are holding back the build-out of AI infrastructure. FuelCell also reported a 275% increase in its business development pipeline since February 2025, largely related to data center demand.
Will AI create the world’s first trillionaire? Our team just released a report on a little-known company, called an “Indispensable Monopoly,” providing the critical technology Nvidia and Intel both need. Continue » |
Because of this, FuelCell has plans to triple manufacturing capacity. With over $1 billion in its backlog, there are plenty of bullish signals for FuelCell right now, and investors are taking notice.
There are still plenty of risks, though. FuelCell is not yet profitable and burns substantial cash. While the growing revenue is promising, to scale manufacturing and convert its backlog will require even more spending. There is a high level of execution risk.
In the first quarter of its fiscal 2026, FuelCell reported revenue growth of 61%, but gross losses also increased 13%. FuelCell is doing the right thing by leaning into AI infrastructure to scale its business. Still, investors should realize there will be significant volatility and that patience will be required to see this through. The stock is best suited for those with a high risk tolerance and a long time horizon.
Before you buy stock in FuelCell Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and FuelCell Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
