Ceres Power is the FTSE's hottest AI stock

Ceres Power is fueling a rally in the FTSE as investors bet on AI-friendly energy solutions. The solid oxide fuel cell specialist rose 268% in 2026, lifting its market cap to about £1.6 billion despite ongoing losses and forecast 2024 sales around £59.3 million, implying a high price-to-sales multiple. The company has secured notable deals, including a licensing agreement with Weichai Power (its largest shareholder) to manufacture fuel cells for data centers in China, and a April agreement with Centrica and Delta Electronics to serve data centers and energy-intensive industries in Europe. Analysts have shifted toward Buy ratings, but the high valuation and lack of profits temper enthusiasm and raise questions about sustainability and risk.