Hydrogen is making a comeback: Plug Power and ITM Power benefit from AI’s hunger for electricity
The energy sector is on the move again, driving massive price surges in related stocks. Shares of the US hydrogen company Plug Power, after a flawless turnaround from USD 1.75, are now seeing their first noticeable pullback at over USD 3. This should come as no surprise, as the rally over the past few weeks was quite intense. Under its new CEO, Jose Luis Crespo, Plug Power is currently working its way out of a long-standing crisis of confidence, supported by an improved margin profile and a clearly communicated path toward profitability. Developments surrounding AI data centers are particularly exciting, as the demand for reliable, off-grid energy supply is rising rapidly there. Here, Plug Power can provide valuable services with high-performance hydrogen fuel cells as a potential supplement for critical power loads. Added to this is a major electrolysis contract in Canada, which not only offers revenue prospects but also underscores the company’s industrial relevance. Together with the announced cost cuts, this strengthens hopes that the operational turnaround could be more sustainable this time.
British company ITM Power is also benefiting from a clearer growth picture, with its share price quadrupling in 12 months, even though the path to profitability is still longer. However, the raised revenue forecast for fiscal year 2026 caught analysts off guard, as it signals solid project work and significantly better capacity utilization in the core business of electrolyzers. Additional momentum came from Morgan Stanley’s significant re-rating, which now expects an earlier break-even point than previously anticipated.
At ITM, too, the AI trend is acting as a catalyst for growth, as the market is currently seeking providers that can deliver power where grids reach their limits. Fundamentally, Plug Power and ITM Power remain high-risk, as they do not yet have a broad profit base and their valuations depend heavily on future order intake dynamics. Anyone investing here is not buying a defensive stock but rather placing a bet on future operational discipline, market acceptance, and the new wave of demand for AI power.
Small but explosive: A.H.T. Syngas Technology and the next wave of the energy transition
In the current environment, a greentech provider from Germany is also making a name for itself. With its gasification technology, A.H.T. Syngas Technology (A.H.T. for short) positions itself as a provider of decentralized energy systems that convert biogenic residues into electricity, heat, and synthesis gas, thereby substituting fossil natural gas. Building on this model, CEO Gero Ferges says the focus is now clearly on accelerated growth and strategic development toward becoming an integrated energy provider. At the Impact Investment Day hosted by the Small and MidCap Investment Bank in Bonn, Ferges emphasized that the company intends to expand its own plant operations in the future to generate recurring revenue and reduce its dependence on pure plant sales.
At the same time, he highlighted the economic attractiveness of the projects, which generate not only energy but also emission credits, thereby opening up additional revenue streams. The investment costs per plant range from approximately EUR 1.6 million to EUR 8 million; with this relatively low construction cost, management sees the foundation for scalable growth through long-term contract models. Operationally, the company aims to nearly quadruple revenue from EUR 2.25 million in 2025 to over EUR 9 million in 2026 and even increase it to around EUR 23 million by 2028. In parallel, the turnaround is expected to succeed on an EBITDA basis. After a negative result of EUR -1.7 million in 2025, the company is now targeting the break-even point before expecting sustainable positive results starting in 2027.
Ferges also emphasized that the technological foundation will eventually enable the production of hydrogen from biomass, thereby opening up additional growth areas. Despite these ambitious plans, management views the current market valuation as significantly undervalued, particularly in comparison to the medium-term revenue and earnings targets. Overall, however, a clear transformation path emerges in his presentation, in which A.H.T. aims to evolve from a project provider into a scaling energy producer with recurring cash flows. These statements should help the stock price recover, as its market capitalization of just under EUR 8 million is extremely low for the planned scope of business.
CEO Gero Ferges will explain the company’s strategy in detail at the 19th International Investment Forum. Click here to register.
Is the spectacular surge for Nel ASA now the turning point?
Nel ASA’s stock experienced an explosive price surge of around 40% last week—a classic momentum run that had long been signalled within the peer group. However, the movement goes well beyond the sober fundamentals. Although the company has a solid liquidity base of around NOK 1.7 billion to finance expected revenue, according to its Q1 report, operating losses continue to rise, and economies of scale have yet to materialize. It is precisely this contrast between cautious analyst views and speculative enthusiasm that is currently fueling the rally, as the market is replaying the international hydrogen narrative. Nevertheless, delayed major projects and weak monetization to date can only be ignored in the short term. This creates a tense dynamic of skepticism in the fundamentals and euphoria in the stock price. A mix that may continue to work well in the short term, but threatens to tip over just as quickly.
Alternative energies are the key to structurally resolving Europe’s energy crisis, as they increase supply security, reduce price dependencies, and simultaneously make climate targets achievable. Companies such as Plug Power, ITM Power, and Nel ASA are driving the decarbonization of industry and mobility with their electrolysis and hydrogen solutions and are benefiting from rising investments. Complementing this, A.H.T. Syngas positions itself as a bridge between the circular economy and energy production through technologies that convert waste into synthesis gas. Investors who add these stocks to their portfolios gain access to a dynamic ecosystem where innovative energy players are not only part of the solution but also offer significant growth potential.
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