24H｜Plug Power Stock Jumps Another 8%, Extending 9-Day 88% Winning Streak

Plug Power shares jumped another 8.3% in overnight trading.

Shares of hydrogen technology provider Plug Power has seen a significant increase recently. Exactly why is hard to figure out.

It could be an old-fashioned short squeeze.

Shares of the hydrogen technology provider surged 21.6% on Monday. This marks the stock’s ninth consecutive gain, with a cumulative increase of 87.9% during the period.

Craig-Hallum has raised its price target on Plug Power to $4.00 from $2.00 on Monday, while maintaining a Buy rating, citing an inflection point in the hydrogen fuel cell company’s business.

Meanwhile, investors may connect the artificial intelligence boom to the growing need for alternative energy solutions.

The hydrogen fuel cell company gained favor in September as the market recognized the immense power requirements of data centers essential for AI development.

Recent’s rally is also supported by the Federal Reserve’s recent interest rate cut, which lowers borrowing costs for capital-intensive companies like Plug. This easing of financial pressure, combined with the powerful new demand from the AI sector, is fueling strong investor optimism for the company’s future profitability.

The explosive growth of artificial intelligence has created an energy challenge. AI models require vast, uninterrupted power for computation and cooling within massive data centers, straining traditional power grids. This is where Plug Power could offer a solution.

The company’s hydrogen fuel cells could potentially serve as a scalable form of green power. This could allow data centers to expand without being limited by grid capacity, ensuring the constant uptime critical for AI operations while also meeting potentially stringent corporate sustainability goals.