Hydrogen stocks FuelCell Energy and Plug Power drop sharply after recent gains on profit-taking and reassessment.

Shares of FuelCell Energy and Plug Power fell 22% and 12% respectively after strong recent rallies driven by AI data center demand and hydrogen optimism. FuelCell's stock surged 130% last month but faces concerns over revenue concentration, competitive pressures, and a challenging earnings history. Plug Power showed improving revenue and margins but remains down 87% over five years despite a recent 353% rally. The pullback reflects profit-taking and a market reassessment rather than a collapse of the hydrogen trade, which still has structural growth potential. Investors should watch for support levels and upcoming catalysts like Plug Power's tax credit sales that could influence sentiment.