Power infrastructure provider Bloom Energy reports near-term headwinds from potential AI spending moderation and macroeconomic uncertainty.
OpenAI CEO Sam Altman has revealed that politeness toward AI models comes at a significant cost. When users employ courteous language such as "please" and "thank you" when interacting with ChatGPT, the company loses "tens of millions of dollars well spent" in electricity costs. Kurt Beavers, a director on the design team for Microsoft Copilot, explained that "using polite language sets a tone for the response," and noted that when an AI model "clocks politeness, it's more likely to be polite back," suggesting there are tangible benefits to user-AI interactions despite the operational expenses.
OpenAI has intensified its competitive position in the artificial intelligence race by releasing two new models: o3, its main reasoning model, and o4-mini, a smaller version released simultaneously. These represent the first AI models from OpenAI with the ability to "think with images"—meaning they can integrate visual information directly into the reasoning chain rather than simply viewing images. The o3 allows users to upload whiteboards, sketches, and other images for the AI to analyze and discuss. Both models have been equipped with the capability to independently use all ChatGPT tools, including web browsing, Python, image understanding, and image generation, enabling them to solve complex, multi-step problems more effectively and take real steps toward acting independently.
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers. On April 21, Truist lowered the firm's price target on the stock to $19 from $22 and maintained a "Hold" rating, citing a pullback in AI spend and macroeconomic uncertainty as headwinds. While Bloom holds potential to grow in the data center space, tariff and macroeconomic uncertainty, coupled with LLM efficiency concerns, are creating near-term challenges, with analysts noting that greater urgency among hyperscaler and datacenter customers would be required to justify a further premium multiple. Overall, BE ranks 9th on the list of top AI stocks making headlines today.
The stocks highlighted in this analysis were selected through examination of news articles, stock analysis, press releases, and hedge fund positions as of Q4 2024. The strategy underlying the Insider Monkey Quarterly Newsletter, which selects 14 small-cap and large-cap stocks every quarter, has returned 373.4% since May 2014, beating its benchmark by 218 percentage points. While Bloom Energy presents investment potential, the analysis suggests that certain other AI stocks may hold greater promise for delivering higher returns within a shorter timeframe, with one AI stock having gained value since the beginning of 2025 while popular AI stocks declined approximately 25%.