Bloom Energy shares experienced a significant surge, climbing 7.35% in regular trading on Friday following the announcement of its inclusion in the S&P 500. The momentum continued in after-hours trading, with the stock gaining nearly another 7%, as investors responded positively to the news.
The company is set to officially join the S&P 500 before the market opens on September 21, 2026, replacing Molson Coors Beverage in the index. This inclusion is part of the benchmark's quarterly reshuffle and is expected to boost demand for Bloom Energy's stock as funds tracking the S&P 500 adjust their portfolios.
UBS analyst Manav Gupta highlighted that historical index additions often lead to a meaningful increase in passive ownership, marking this move as a potentially significant catalyst for Bloom Energy.
“Historical index additions have resulted in a meaningful increase in passive ownership, making the move a potentially significant catalyst for Bloom Energy.”
Manav Gupta, UBS Analyst
Gupta also raised his price target for the company to $325 from $300, maintaining a Buy rating, which implies more than a 28% potential upside from the stock's last close.
Bloom Energy's strategic positioning amid rising demand for power infrastructure linked to the AI boom further enhances its appeal to investors. The company's inclusion in the S&P 500 not only provides a potential catalyst but also increases its visibility, potentially attracting more institutional and passive-fund ownership.
Background
Bloom Energy's inclusion in the S&P 500 comes at a time when the company is gaining attention due to the rising demand for power infrastructure driven by the artificial intelligence sector. This development is likely to enhance the company's market presence and attract more investors.
As Bloom Energy prepares to join the S&P 500, investors will be watching closely to see how the stock performs and whether it meets the optimistic projections set by analysts.
