Why Plug Power Stock Surged on Friday

By Neha Chamaria – Jan 2, 2026 at 4:02PM ESTKey PointsPlug Power's plans to achieve profitability have caught the attention of an analyst.But before you buy the stock, there's something you must know.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: PLUGPlug PowerMarket Cap$2.7BToday's Changeangle-down(12.94%) $0.26Current Price$2.23Price as of January 2, 2026 at 3:58 PM ETOne analyst sees 50% upside in the hydrogen stock.Shares of Plug Power (PLUG +12.94%) kicked off 2026 on a high note, surging 14.5% as of 2 p.m. ET Friday. Thematic momentum dominated the markets on the first trading day of the new year, with clean energy stocks surging across the board as investors anticipate a surge in global power demand in 2026 and beyond amid reshoring and rapid data center expansion. Plug Power, however, also won an analyst upgrade, fueling a fresh wave of optimism among investors as the new year begins. Image source: Getty Images. What's fueling Plug Power stock's rally?

Analyst Tim Moore from Clear Street upgraded Plug Power's stock rating from hold to buy, signaling renewed bullishness about the hydrogen fuel cell maker's prospects. Moore also assigned a price target of $3 per share to the hydrogen stock. Although lower than the analyst's previous target of $3.50 per share, the new price target still represents 50% upside from Plug Power's Dec. 31, 2025, closing price. ExpandNASDAQ: PLUGPlug PowerToday's Change(12.94%) $0.26Current Price$2.23Key Data PointsMarket Cap$2.7BDay's Range$2.00 - $2.2752wk Range$0.69 - $4.58Volume5MAvg Vol126MGross Margin-7128.74% With shares of Plug Power retreating sharply after crossing $4 in mid-October, Moore believes the stock is now more compelling, with strong potential upside as the company moves toward profitability. Plug Power's Project Quantum Leap program, targeting annual cost savings of $150 million to $200 million, is one of the things that has caught Moore's attention.Advertisement Is Plug Power stock a buy for 2026? Moore might be bullish about Plug Power, but I'm not so. Plug Power is still far from profitability despite being in the business for decades. Cost savings are important, but Plug Power's pivot to green hydrogen production was supposed to be the key to profitability. That plan has stalled though, as Plug Power had to recently suspend a major expansion program after the Trump administration paused the previous government's funding programs. Plug Power was betting on a $1.66 billion loan to drive growth, but its plans have hit a political roadblock.Read NextDec 31, 2025 •By Scott LevineWhy Shares of Plug Power Popped TodayDec 31, 2025 •By Rich SmithPlug Power Stock Just Popped. Is It a Buy?Dec 29, 2025 •By Manali Pradhan, CFAPlug Power Stock: Dead or Ready for Revival?Dec 24, 2025 •By Parkev Tatevosian, CFAI'm Upgrading Plug Power Stock for the First Time in 5 Years!Dec 23, 2025 •By Emma NewberyStock Market Today, Dec. 23: Plug Power's Namibia Launch Fails to Lift Investor SentimentDec 17, 2025 •By David Jagielski, CPAPlug Power's New CEO Aims to Make the Company Profitable by 2028.

How Likely Is That to Happen?About the AuthorNeha Chamaria is a contributing Motley Fool stock market analyst covering energy, industrials, utilities, and materials sectors, with a focus on dividend stocks. Prior to The Motley Fool, Neha worked on portfolio valuations for hedge funds at HSBC and authored articles as a journalist. She holds a master’s degree in finance from ICFAI and an MBA from Symbiosis University, along with certifications from the National Stock Exchange of India. Neha was honored with an all-India gold medal for her M.S. in Finance and was the first woman in her family to pursue a professional career.TMFNehamsX@nehamschamariaStocks MentionedPlug PowerNASDAQ: PLUG$2.23 (+0.13%) $+0.26*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement