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Shorting the Grid: Bloom Energy’s $25B AI Power Play
Submitted by Jeffrey Neal Johnson. Posted: 7/2/2026.
Key Points
- Bloom Energy and Brookfield Corporation expanded their power-financing partnership fivefold, from $5 billion to $25 billion, to fund off-grid AI data center power.
- Bloom Energy reported quarterly revenue of $751.05 million, up 130.4% year over year, with its market capitalization surpassing $75 billion after a more than 1,100% valuation gain.
- Brookfield, managing over $1 trillion in assets, offers lower-volatility AI infrastructure exposure, while Bloom carries significant execution risk at a 220 forward price-to-earnings multiple.
- Special Report: SpaceX is offering you shares. Don't take them.
Hyperscalers are running into a hard physical limit in the artificial intelligence arms race. While silicon manufacturers can produce advanced chips at scale, utility providers routinely quote interconnection timelines of three to five years for new data center projects.
For technology sector giants locked in an existential battle for AI supremacy, waiting half a decade to power a server farm is a nonstarter. This infrastructure bottleneck is forcing a major capital shift toward off-grid, islanded power solutions. The AI supercycle is rapidly moving from a software narrative to a heavy-industry reality, demanding immediate, scalable electricity to keep development pipelines moving.
Rewiring Data Center Finance
What really happened in Beijing? (Ad)
Trump just returned from Beijing with the most powerful business delegation in American history - Elon Musk, Jensen Huang, Tim Cook, and the CEOs of BlackRock, Goldman Sachs, and CitiBank. The media covered the handshakes. But what was really being negotiated behind closed doors?
Porter Stansberry has connected the Beijing trip to a landmark pact signed by 13 nations in Washington - a pact designed to cut China out of a $3 trillion investment wave tied to the most critical resource of the 21st century. His new documentary exposes the five assets at the center of it all.
Watch the full documentary and see which assets are positioned to benefitValidating this structural shift, Bloom Energy (NYSE: BE) and Brookfield Corporation (NYSE: BN) recently expanded their strategic power-financing framework from an initial $5 billion to $25 billion. The market quickly recognized the scale of this fivefold capital injection, sending Bloom Energy shares up 10% in trading to top $300.
Understanding this partnership requires looking beyond the immediate price action and focusing on the permanent shift underway in the data center landscape. Capital is flowing directly into operations capable of generating scalable baseload power, bypassing the legacy utility grid to meet insatiable computing demand.
Building the AI Factory: Power on Demand
The traditional data center development model is fundamentally broken. Historically, developers secured land, built the physical shell, installed the compute racks, and then plugged into the local utility grid. Today, the immense power density required for artificial intelligence training clusters can overwhelm legacy utility infrastructure almost immediately.
Bloom Energy solves this bottleneck with solid oxide fuel cell technology. Rather than waiting for local grid upgrades, Bloom servers convert natural gas or hydrogen into electricity through an on-site electrochemical reaction. This process provides hyperscalers with immediate, deployable electricity that operates independently of the broader utility grid.
Brookfield Corporation plays an equally critical role in this equation. Sourcing billions of dollars for independent power generation drastically changes the risk profile of a massive data center build. Through a dedicated $100 billion AI Infrastructure Fund, Brookfield is stepping in to finance the entire package.
Bloom and Brookfield are pioneering an integrated AI factory model. This framework allows developers to finance land, liquid-cooling infrastructure, compute hardware, and islanded fuel-cell power as a single, cohesive project from day one.
High-Voltage Volatility: Bloom's Breakout Fundamentals
The fundamental story for Bloom is undeniably accelerating. Bloom Energy recently reported quarterly revenue of $751.05 million, up 130.4% year over year. The market has responded positively to this growth trajectory, boosting Bloom's valuation by more than 1,100% over the trailing 12 months and pushing its market capitalization past $75 billion.
Beneath the surface, a complex technical setup is acting as a major upside catalyst. Bloom currently has a short float of about 11%, with a days-to-cover ratio of about 3.25. In isolation, this metric suggests a healthy amount of market skepticism. When combined with the sheer volume of institutional capital rotating into Bloom, this dynamic creates the potential for a compound short squeeze.
As the Brookfield Corporation news hit the wire, intraday options flow showed aggressive call buying, pushing the 10-day call-to-put volume ratio to 1.62. When retail and institutional buyers flood the options chain with out-of-the-money calls, market makers are forced to buy the underlying stock to delta hedge their positions.
This mechanical buying pressure, paired with short sellers scrambling to cover their negative bets, creates strong upside momentum. Wall Street is adjusting its models to account for this new reality. On July 1, 2026, UBS raised its price target from $322 to a new street-high of $350, challenging the Royal Bank of Canada's reiterated Outperform rating and its previous street-high target of $335. In both cases, the targets offer meaningful upside for investors willing to accumulate at current levels.
Execution risk remains the primary headwind. Bloom trades at a forward price-to-earnings multiple of 220. The company operates with extremely thin net margins of 0.25% and carries a leveraged balance sheet with a debt-to-equity ratio of 2.90.
Recent insider selling from executives like Chief Commercial Officer Aman Joshi and former CEO John Chambers might raise investor eyebrows, but these dispositions are largely tied to prearranged tax plans, a standard practice after a sharp valuation run. Even so, at this premium valuation, Bloom must execute its $25 billion project pipeline flawlessly to avoid a significant multiple contraction.
Heavy Lifting: Financing the AI Power Surge
While Bloom Energy offers high-octane growth potential, Brookfield Corporation represents the foundational bedrock of the AI infrastructure trade. Committing $25 billion to a single technological framework requires an almost unfathomable level of balance sheet liquidity.
First-quarter data highlights exactly why Brookfield is uniquely positioned to act as the primary financier of the physical technology buildout. Brookfield now oversees more than $1 trillion in total assets under management, anchored by $614 billion in fee-bearing capital. The company generates more than $4 billion in trailing 12-month distributable earnings, providing the cash flow needed to aggressively fund its massive mandates without dangerously stretching its leverage profile.
Trading at 14.2 times forward earnings, Brookfield offers a distinctly different value proposition than its high-flying technology partners. Brookfield also boasts a projected earnings growth rate of 34% and pays a modest 0.65% dividend yield, choosing to reinvest most of its capital into high-conviction real assets.
For capital allocators, Brookfield should be viewed as a lower-volatility, defensive vehicle for gaining exposure to data center expansion, allowing investors to capture toll-road-style fees from the global computing supercycle.
Plugging in: Capitalizing on the Power Shift
The artificial intelligence boom is splitting into two distinct investment camps. Semiconductor sector designers and software platforms dominated the first wave. The second wave, unfolding now, is defined by concrete, copper, cooling, and kilowatts.
The expanded alliance between Bloom Energy and Brookfield Corporation shows that hyperscalers are willing to bypass the traditional power grid entirely to maintain their compute deployment schedules. Bloom provides the necessary localized hardware, while Brookfield supplies the capital required to scale these operations globally.
Investors looking to capitalize on this shift in physical infrastructure may want to add both sides of this partnership to their watchlists. Those with a higher risk tolerance could monitor Bloom for continued momentum as it scales manufacturing to meet the new $25 billion mandate. More cautious market participants may prefer Brookfield as a diversified, cash-flowing anchor for long-term alternative asset exposure.
AST SpaceMobile’s Japan Catalyst Puts Its Rollout Story Back in Focus
Submitted by Jessica Mitacek. Posted: 7/3/2026.
Key Points
- AST SpaceMobile shares surged 21% on June 29 after Japan announced a roughly $912 million subsidy for a Rakuten-led satellite communications project.
- Rakuten and AST SpaceMobile plan a joint venture targeting regulatory approval for D2D operations in Japan, with initial commercial services expected in 2026.
- Despite the bullish catalyst, analysts maintain a consensus Reduce rating on ASTS.
- Special Report: SpaceX is offering you shares. Don't take them.
The roller-coaster ride continues for AST SpaceMobile (NASDAQ: ASTS) shareholders.
After space stocks were battered in the wake of the SpaceX (NASDAQ: SPCX) IPO in June, AST SpaceMobile rewarded patient investors with its best daily performance in two years.
What really happened in Beijing? (Ad)
Trump just returned from Beijing with the most powerful business delegation in American history - Elon Musk, Jensen Huang, Tim Cook, and the CEOs of BlackRock, Goldman Sachs, and CitiBank. The media covered the handshakes. But what was really being negotiated behind closed doors?
Porter Stansberry has connected the Beijing trip to a landmark pact signed by 13 nations in Washington - a pact designed to cut China out of a $3 trillion investment wave tied to the most critical resource of the 21st century. His new documentary exposes the five assets at the center of it all.
Watch the full documentary and see which assets are positioned to benefitShares of the Midland, Texas-based space-based direct-to-device (D2D) cellular broadband provider surged 21% on Monday, June 29, to close out the second quarter on a strong note. The move was a welcome reprieve after a month in which the market punished ASTS despite the successful launch of its low Earth orbit (LEO) BlueBird satellites 8, 9, and 10.
The catalyst for this week’s big jump was Japan’s plan to grant up to 148 billion yen (approximately $912 million) to a satellite communications project led by Rakuten (OTCMKTS: RKUNY). That put AST SpaceMobile’s Rakuten partnership back into the spotlight while raising hopes for a major D2D rollout in Japan.
Japan Announces Massive Space-Based Telecom Subsidy
Motivated by concerns that critical communications infrastructure has become too dependent on foreign satellite networks such as SpaceX’s Starlink, Japan is using the Japan Low Earth Orbit Satellite Communications Project (J-LEO) to support a more resilient domestic alternative.
The program is expected to focus on satellite connectivity for remote areas, disaster response, and emergency communications, giving the Rakuten-led effort strategic value beyond a standard commercial telecom rollout.
According to the Japan Times, Japan's Ministry of Internal Affairs and Communications secured funding for J-LEO in 2025, but the tender process didn’t conclude until last month. The plan calls for massive investment in the build-out of a homegrown D2D satellite network over the next three years.
Beyond the subsidy news, Rakuten announced plans for a joint venture with AST SpaceMobile that will secure full regulatory approval for D2D operations in Japan. Initial commercial services are expected to begin later in 2026, with a full rollout slated for 2027.
The move could become a boon for AST SpaceMobile. Having nearly $1 billion in sovereign-backed capital would give the company a clearer template for monetizing its technology through carrier- and government-backed international networks.
Launch Window Set for BlueBirds 11, 12, and 13
After the successful June launch of its latest three satellites, AST SpaceMobile says it intends to launch BlueBirds 11, 12, and 13 from Cape Canaveral, Florida, in the first half of August. That will go a long way toward keeping the company on track to meet its goal of putting 45 LEO satellites in orbit by the end of 2026.
“These next-generation satellites are expected to deliver nearly double the peak data speeds of AST SpaceMobile's initial Block 1 BlueBird satellites, which recently achieved peak download speeds of 98.9 Mbps directly to standard smartphones," according to a recent company press release.
Beyond 2026, the company is scaling toward a constellation of 45 to 60 satellites, which it will require to provide initial continuous coverage in the United States and Japan. That number will need to increase to support continuous global coverage, with approximately 90 BlueBirds required.
Ultimately, AST SpaceMobile could have as many as 248 satellites deployed to expand its network, increase its data capacity, and support a massive global clientele. However, the company has discussed a long-term plan that could involve up to 540 dual-use satellites over the next decade.
Despite Catalysts, Wall Street Remains Tepid
Despite the news and subsequent bullish price action, the jury is still out on AST SpaceMobile.
In Q2, the stock saw a series of less-than-inspiring ratings. On May 29, William Blair reissued a Market Perform rating on ASTS, while Wall Street Zen lowered its rating from Sell to Strong Sell on April 15.
On May 12, B. Riley Financial increased its ASTS price target from $75 to $85; however, the firm assigned the stock a Neutral rating. Also on May 12, UBS Group lowered its price target from $85 to $80, while in a research note dated June 24, Weiss Ratings reiterated its Sell rating.
Based on the 10 analysts currently covering ASTS, the stock receives a consensus Reduce rating, with a 12-month price target implying around 4% upside from current levels. Meanwhile, current short interest stands at a worrisome 20.35% of the float, or nearly 62.5 million shares valued at $5.47 billion.
However, AST SpaceMobile has agreements with nearly 60 global mobile network providers, totaling more than 3 billion subscribers, and strategic partnerships in place with AT&T (NYSE: T), Verizon (NYSE: VZ), Vodafone (NASDAQ: VOD), Rakuten, Alphabet (NASDAQ: GOOGL), and real estate investment trust American Tower (NYSE: AMT), among others.
Long term, the company should continue to enjoy top-line growth that translates into strong earnings for patient investors.
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