"Shares of FuelCell Energy ( NASDAQ:FCEL) slid 22% in Monday morning trading, while Plug Power ( NASDAQ:PLUG) shares dropped 12%. The selloff hits two of the loudest winners of the AI power trade. The hydrogen rally is taking a breather after weeks of euphoric upside."
"Today's drop looks like profit-taking and a reassessment of the bull case, not the end of the trade. The hydrogen basket simply got crowded, and the AI data center power narrative ran ahead of the fundamentals. Now investors are reweighing the math."
"The recent FuelCell Energy stock run included a 34% pop on the launch of a new "AI-ready" data center platform aimed at AI-driven electricity demand. FuelCell Energy CEO Jason Few has been positioning the company toward that data center power market. Monday's reassessment centers on revenue concentration and a fiercely competitive landscape."
"FuelCell Energy's Q4 FY2025 fundamentals were solid on the surface. FuelCell Energy's revenue came in at $55.02M, up 12% year over year, and EPS of -$0.85 beat the -$1.18 estimate. Yet, FuelCell still carries a trailing EPS of -$6.49 and absorbed a $65.8M solid oxide impairment during the fiscal year."
FuelCell Energy shares dropped 22% and Plug Power shares fell 12% during Monday trading. The decline followed a strong run tied to an AI power theme and a hydrogen rally that had risen rapidly over weeks. The pullback is framed as profit-taking and a reassessment of the bull case rather than an end to the trade. FuelCell Energy gained sharply after launching an “AI-ready” data center platform and positioning for AI-driven electricity demand, but concerns remain about revenue concentration and intense competition. FuelCell Energy reported Q4 FY2025 revenue of $55.02M and EPS of -$0.85, while still carrying a trailing EPS loss and recording a $65.8M solid oxide impairment. Plug Power’s selloff is described as more painful because fundamentals have been improving, including Q1 2026 revenue growth.
Read at 24/7 Wall St.
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