This electrifying mid-cap growth stock caught my eye after I got into gangsterism in October. Green energy specialist The power of Ceres (LSE: CWR) achieved the best result FTSE250 shares in October, jumping almost 75%.

Of course, this does not mean that it will continue to grow in November. Recipients of the profits have already started to emerge, and Ceres has shown that this can be variable. It rose 360% in six months but only 33% in a year and fell 62% in five years. It looks like it could be a rollercoaster ride.

Ceres has power

Ceres develops solid oxide fuel cell and electrolyzer technology for tidy energy and green hydrogen production. They are intended for AI data centers, industrial buildings, power grid stabilization and cleaner marine energy. The company uses a technology licensing model, which allows it to reduce assets and strengthens its financial position.

In July, Ceres gained the status of a strategic partner Doosan fuel cell began mass production of fuel cell stacks in South Korea using its technology. These stacks will power tidy energy systems in rapidly growing markets such as AI data centers. Doosan expects first sales by the end of the year. If this happens, this will be the first royalty revenue that Ceres will receive. This is a massive opportunity for investors looking for a riskier growth play on the FTSE 250 index.

The huge potential of artificial intelligence

Ceres has a market capitalization of £520m but is not yet profitable. Last year it lost £28.3 million. Revenue for 2024 increased by 132% to £51.9 million, driven by record orders of £112.8 million from up-to-date partnerships in Asia.

However, on September 26 this year, shares fell after a nearly 40% cut to full-year 2025 sales forecasts due to delays in a up-to-date production licensing agreement. Management based this on forceful comparative data after securing a significant one-time license with partner Delta in 2024. That didn’t stop investors from chasing higher fees last month.

Then on Wednesday (October 29) Swiss Bank UBS almost tripled its share price target from 120p to 350p and upgraded Ceres to buy, citing growing demand for solid oxide fuel cell technology and improved financial prospects.

Long-term potential

UBS expects the company to break even in 2026, a year earlier than previously forecast, thanks to cost cuts and royalty income from Doosan. The bank predicts Ceres will capture up to 10% of the growing AI data center segment, potentially worth £50 billion by 2030. He believes that low capital intensity and cash burn could leave the company with a cash buffer of £50 million in 2026 before becoming cash flow positive in 2027.

The Ceres share price rose 16% to 306p on Wednesday (October 29), but ended the week at 277p, down 7.64% on Friday. Probably profiteering.

Six of the seven analysts who have rated Ceres over the past three months rated it as a forceful buy, with one saying it was a hold. Their consensus one-year price forecast is 275.8p, just 3% above today’s level. Of course, most estimates will be made before the recent surge.

Given the high risk, I think it’s only worth considering for experienced investors with a portfolio that can withstand fluctuations. I’m watching the stock closely and may consider buying if it drops a bit from here. I would feel safer buying on a decline than on an raise.