We came across a bullish thesis on Fluence Energy, Inc. on Capitalist Letters’s Substack by Oguz Erkan. In this article, we will summarize the bulls’ thesis on FLNC. Fluence Energy, Inc.’s share was trading at $19.39 as of December 1st. FLNC’s forward P/E was 93.46 according to Yahoo Finance.
Photo by Kumpan Electric on Unsplash
As investors crowd into data center and semiconductor stocks as the “picks and shovels” of the AI boom, valuations in those sectors have soared, leaving little upside. However, another critical enabler of the AI revolution—energy—remains largely overlooked, particularly within nuclear and storage segments.
Bloomberg forecasts that AI data center power demand will quadruple over the next decade, while renewables are expected to double by 2030. Since renewable generation is intermittent, the world will require massive energy storage capacity to balance supply and demand, creating a long-term growth tailwind for companies like Fluence Energy.
Fluence, a leading provider of utility-scale battery storage solutions, has grown rapidly since 2020 but remains undervalued at just 1.2x sales. It reached profitability last year, marking an inflection point as demand for storage accelerates globally. The company benefits from strong parentage—Siemens and AES Energy—which provide deep manufacturing expertise, established customer relationships, and a robust green energy portfolio. Major customers such as Amazon, Meta, and Google already deploy Fluence’s batteries across data centers.
Fluence’s early move to reshore battery manufacturing to the U.S. has caused short-term delays but positions it strategically as buyers seek to reduce reliance on China amid tariff and data security concerns. Its integrated software platform for monitoring and energy bidding further differentiates it from competitors. With delays behind it, Fluence is poised to capitalize on surging global storage demand. Based on conservative growth and margin assumptions, the company could be worth roughly four times its current valuation, offering a rare asymmetric opportunity for investors.
Previously we covered a bullish thesis on Tesla, Inc. (TSLA) by Oliver | MMMT Wealth in April 2025, which highlighted its long-term ambitions in autonomy, AI, robotics, and energy. The company’s stock price has appreciated approximately by 84.37% since our coverage as investor confidence returned. The thesis still stands as Tesla’s technology vision remains intact. Oguz Erkan shares a similar but more focused perspective on the AI energy ecosystem through Fluence Energy.
