In recent years, hydrogen energy has distinguished itself from other renewable energy sources like wind and solar, largely due to substantial government backing and an increasing wave of interest from private investors. As we look towards 2025, the industrial applications for hydrogen are expected to expand significantly, which in turn is likely to bolster hydrogen stocks considerably. The advancements in research and technology are not only easing the production and storage of hydrogen but also promise to bring about massive improvements in cost and scalability.

After a tumultuous 2023, characterized by high interest rates and widespread investor skepticism that led to a decline in clean energy stocks, the hydrogen sector is showing signs of recovery in 2024. The Global Hydrogen Index has experienced a rise of 4.86% in U.S. dollar terms, indicating a positive turnaround. A key catalyst in this resurgence is the finalization of hydrogen tax credit guidelines; as noted by Barron’s, the 45V tax credit, which offers up to $3 per kilogram for clean hydrogen production, is providing a much-needed boost to investments in this sector.

Investors are increasingly on the lookout for long-term growth opportunities within emerging sectors, even as they grapple with the unpredictable nature of interest rate fluctuations and shifting energy policies. Amidst these dynamics, both policymakers and corporations are beginning to view hydrogen adoption more favorably. According to Grand View Research, the hydrogen industry is projected to reach an astounding $317.39 billion by the year 2030, expanding at a robust compound annual growth rate (CAGR) of 9.3%.

The World Energy Transitions Outlook 2025 underscores the necessity for an annual deployment of over 1,000 gigawatts of renewable power to adhere to a 1.5°C pathway. Hydrogen is anticipated to play a crucial role in the decarbonization of various end-use applications and in enhancing the flexibility of the power system. Moreover, the investment needs for clean hydrogen and its derivatives are estimated to be around $1.1 billion annually to meet global transition requirements. A report from the International Energy Agency (IEA) in 2025 revealed that global energy demand surged by 2.2% in 2024, a rate that surpasses the average, reinforcing the notion that the appetite for alternative energy sources remains strong.

As the global shift towards clean energy and decarbonization accelerates, hydrogen stocks are witnessing renewed interest from institutional investors and high-net-worth individuals. With the latest breakthroughs in hydrogen technology, what was once seen as a speculative energy resource is now emerging as a promising investment opportunity in the clean energy arena.

Recently, we published a comprehensive analysis of the 10 Best Hydrogen Stocks to Buy According to Billionaires. This article specifically delves into how Ballard Power Systems Inc. (NASDAQ:BLDP) compares with other top hydrogen stocks favored by billionaires.

However, despite the positive momentum, the hydrogen sector still faces significant challenges. Hydrogen stocks grapple with cost competitiveness issues and regulatory uncertainties. Even with declining costs, green hydrogen remains relatively expensive compared to fossil fuels. Stricter lifecycle emission standards for qualifying hydrogen progenitors under the 45V tax credit could slow down adoption rates. In addition, geopolitical uncertainties could pose further risks to supply chains.

Despite these hurdles, the increasing interest in the hydrogen industry is undeniable. Its vast potential has drawn the attention of major investors such as Bill Gates and Jeff Bezos, both of whom are backing startups that aim to leverage expertise from the hydrocarbon sector to take advantage of the rapidly expanding hydrogen market—an expansion that analysts have dubbed a “white gold rush.” Within this growing global hydrogen economy, some of the most promising hydrogen stocks are well-positioned to create substantial value.

Our Methodology:

Utilizing Insider Monkey’s exclusive database of billionaire stock holdings, we compiled our list of the best hydrogen stocks to buy according to influential billionaires. We screened top hydrogen stocks that are part of notable industry exchange-traded funds (ETFs) and picked the 10 best based on the highest number of billionaire investors as of Q4 2024. In cases where stocks had the same number of billionaire holdings, we used the total value of those holdings as a secondary ranking metric. Billionaires featured in our analysis are founders or managers of some of the world’s most prominent hedge funds and companies.

Why focus on stocks that hedge funds are investing in? The rationale is straightforward—our research has indicated that imitating the top stock picks of leading hedge funds can yield market-beating returns. Our quarterly newsletter follows a strategy of selecting 14 small-cap and large-cap stocks each quarter, boasting a remarkable return of 373.4% since May 2014, outperforming its benchmark by 218 percentage points (see more details here).

Is Ballard Power Systems Inc. (BLDP) the Leading Hydrogen Stock to Invest in According to Billionaires?

Ballard Power Systems Inc. (NASDAQ:BLDP) specializes in the design and manufacture of hydrogen fuel cell systems, catering to heavy-duty applications that include buses, trucks, rail transport, marine operations, and stationary power. Additionally, the company provides a range of services, including technological solutions and training, positioning it as one of the best hydrogen stocks to monitor closely.

In April 2024, Ballard Power Systems Inc. (NASDAQ:BLDP) made headlines by signing a significant Long-Term Supply Agreement with Solaris, a leading European bus manufacturer, to supply 1,000 hydrogen fuel cell engines through 2027. This agreement represents the largest engine order in the company’s history. Moreover, in March 2025, Solaris launched the first phase of a fleet of 137 buses in Bologna and Ferrara, Italy, all powered by Ballard’s cutting-edge technology.

In a strategic move to expand its footprint, Ballard Power Systems Inc. partnered with Vertiv in February 2025 to develop a zero-emission uninterruptible power supply (UPS) system for data centers, utilizing Ballard’s fuel cell systems to ensure an uninterrupted power supply.

Financially, Ballard Power Systems Inc. reported a revenue of $69.7 million for fiscal year 2024, reflecting a 32% decrease compared to the previous year. The net loss expanded significantly to $323.5 million, a sharp increase from 2023. Nonetheless, analysts are optimistic about the company's future. Of the 16 analysts covering the stock, 75% have rated it as a Hold, with a median price target of $1.50, indicating a potential upside of 38.9% from current levels. Ballard continues to be viewed as a long-term clean energy investment backed by robust partnerships and increasing traction in the global hydrogen market.

Overall, BLDP ranks 9th among the best hydrogen stocks to buy according to billionaires. While we recognize the potential encapsulated within BLDP, our belief leans towards the notion that AI stocks present greater opportunities for higher returns in a shorter duration. We have identified an AI stock that has performed well since the beginning of 2025, while many popular AI stocks have seen a decline of around 25%. For those interested in exploring a more promising AI stock trading at less than five times its earnings, check out our report on this budget-friendly AI investment.

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