Plug Power Stock Trades Wildly on AI News. Its Business Model Is Changing.

Plug Power stock has risen 20% this year, through Monday’s close. (Agnes Lopez/Bloomberg)

Key Points

• Plug Power reported third-quarter sales of $177.1 million, exceeding Wall Street expectations of $176.3 million.
• Plug Power plans to sell electricity rights to AI data centers to generate $275 million in liquidity and strengthen its balance sheet.
• The company will suspend Department of Energy loan program activities to reallocate capital toward higher-return hydrogen network opportunities.

Electricity is the new oil.

Shares of hydrogen technology provider Plug Power were all over the place early Tuesday after the company announced a lot the previous evening—including an unusual plan to generate more liquidity by selling electricity rights to operators of artificial-intelligence data centers.

Plug stock traded as high as $2.93 and as low as $2.36 on Tuesday before closing at $2.53, down 3 cents or 1.2%, while the S&P 500 added 0.2% and the Dow Jones Industrial Average gained 1.2%.

The moves came after Plug Power reported third-quarter sales of $177.1 million. Wall Street was looking for $176.3 million, according to FactSet. A year ago, the company reported sales of $173.7 million.

Plug isn’t profitable yet, so investors pay close attention to cash flow. The company used $90 million in cash from operations and ended the quarter with $166 million in cash on its books. After the quarter, Plug raised an additional $370 million.

Along with third-quarter numbers, Plug announced it expects an additional $275 million in liquidity from “the combination of asset monetization, release of restricted cash, and reduced maintenance expenses.”

As part of that, Plug is going to sell its electricity rights in New York and one other location to power-hungry AI data centers that hyperscalers—such as Amazon.com , Meta Platforms , Microsoft, Alphabet, and others—are spending hundreds of billions to build as quickly as possible. Plug will also work with data centers to provide backup power solutions.

As a result, Plug will suspend activities related to the Department of Energy loan program, “and reallocate capital toward higher-return opportunities across its hydrogen network.”

“The actions we are taking today reflect Plug’s agility and financial discipline,” said CEO Andy Marsh in a news release. “Monetizing these assets strengthens our balance sheet, while partnering on a large-scale data center development expands Plug’s reach into a dynamic, high-growth market that values reliability, resiliency, and sustainability.”

BTIG analyst Gregory Lewis called the monetization “prudent” in a Monday report. He rates shares Hold and doesn’t have a price target for shares.

“There’s definitely a different feeling in the air; something has changed,” wrote Canaccord analyst George Gianarikas ins a Monday report. “After years of constructing its infrastructure—and unfortunately putting the cart before the horse—it appears Plug Power has entered harvest mode.”

Plug has spent billions building equipment and facilities to produce hydrogen gas from water and electricity. Selling electricity assets represents a new focus on profitability, adds Gianarikas. He rates shares Hold, but increased his price target to $2.50 a share from $1.25.

Wall Street projects positive operating profit in 2029 on sales north of $1.7 billion, up from $700 million in 2025. Analysts might have to update models amid Plug’s changing operating strategy.

Coming into Tuesday trading, Plug stock was up 20% year to date, but down 25% over the past month. Shares of the hydrogen tech company tend to see volatile trading.

Write to Al Root at allen.root@dowjones.com