Hydrogen stocks continue to hold significant potential for investors. It continues to have the potential to de-carbonize various sectors and for that reason hope surrounding hydrogen remains.
That said, significant hurdles remain. Hydrogen continues to be more expensive to produce than traditional fossil fuels. Cost is usually king and the costs associated with switching away from fossil fuels is high. In that regard, hydrogen and EVs face a similar issue. Infrastructure issues, transportation problems, and larger acceptance also plague hydrogen.
Overall, it’s clear that the hydrogen industry has work to do. However, it is that development which ultimately promises to create 10X opportunities within hydrogen stocks for growth.
This article is organized with riskier opportunities discussed at the top and a highly stable opportunity discussed last. While the riskier opportunities promise to produce 10X gains faster, the stable investment promises a greater likelihood of 10X returns overall. Investing according to your individual risk profile is the best way to approach hydrogen and any other high growth stocks.
Bloom Energy (BE)
Bloom Energy (NYSE:BE) stock is particularly interesting at the moment due to artificial intelligence.
The company manufacturers, sells, and installs on-site power generation systems in the U.S. and abroad. The Bloom Energy Server converts various fuels including hydrogen into electricity. Those power generation systems are in demand across various industries where large quantities of electricity are consumed. That means Bloom Energy has found end markets in agriculture, retail, higher education, hospitals, and perhaps most importantly, data centers.
One of the biggest opportunities in artificial intelligence is data center demand. Data centers are buying up massive quantities of AI chips and in the process of expanding operations have increased electricity consumption. Meanwhile, those same data centers have also promised to reduce their carbon footprints. That opens a palpable opportunity for Bloom Energy.
The overall result is that Bloom Energy looks stronger for that opportunity. The AI supply chain is likely to garner more interest moving forward and Bloom Energy is a name to consider therein.
Ballard Power (BLDP)
Ballard Power (NASDAQ:BLDP) is the riskiest stock discussed on this list and that makes it particularly interesting for investors seeking 10X returns. Higher risk is correlated with higher potential returns. Ballard Power is certain to continue to be intriguing for that reason.
The real question for the company is going to be whether or not it’s capable of filling the obvious demand for its fuel cell products.
Ballard Power booked $64.7 million of new orders in the 4th quarter. In the first quarter the company booked another $64.5 million worth of orders. Yet Q1 revenues reached a comparatively low 14.5 million, rising 9% on a year-over-year basis.
The company is building a Gigafactory in Rockwall, Texas. The three gigawatt factory is expected to significantly reduce costs associated with production. That’s a particular issue with Ballard Power which continues to produce losses overall. The company clearly has a lot to balance at the moment but if it gets it right, at $2.75 a share, 10X returns are far from out of the question.
Linde (LIN)
Linde (NASDAQ:LIN) is a quiet company operating in the industrial sector and a stable investment overall. In short, it’s not the kind of stock you would expect to produce 10X returns.
Admittedly, it will take a long time for Linde to produce 10X gains. The stock is established, it has a long track record of operation, and it’s simply not an exciting upstart with massive growth potential.
However, Linde is a company that runs exceptionally well. Over time, that’s the kind of investment that can turn $10,000 into $1 million. Linde is a major producer of hydrogen but that’s not really the point I want to make. Again, it’s about the long-term perspective and the hydrogen opportunity.
Linde has a history of treating its shareholders well. Take, for example, company performance in 2023 where revenues declined by 2%. Linde managed to increase earnings by 53% in 2023. Remember, earnings are the single strongest factor in moving a stock’s price upward. Imagine what the company will be able to do if and when hydrogen revenues increase top line performance.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
