I'd Rather Own Bloom Energy Than Nvidia Right Now. Here's My Case.
The niche green energy stock could have more upside potential than the AI leader.
Overview
Bloom Energy (NYSE: BE) and Nvidia (NASDAQ: NVDA) are both great plays on the AI boom. Bloom develops solid oxide fuel cells (SOFCs), which can convert natural gas, propane, biogas, and hydrogen into electricity without any combustion. A growing number of big tech companies and hyperscalers are using its SOFC systems, which can be deployed in just a few months in off-grid locations, to support the expansion of their cloud and AI infrastructure.
Nvidia is the world's largest producer of data center GPUs, which are used to train AI algorithms. Most of the top cloud and AI companies use Nvidia's GPUs, and Nvidia locks them in with its proprietary software and services. That's why Nvidia is often considered the linchpin and bellwether of the growing AI market. Both of these stocks still have plenty of upside potential. But if I had to choose one over the other, I'd buy Bloom for three simple reasons.
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Originally published at www.fool.com.