Many people view hydrogen as the power source of the future because it emits no greenhouse gases when burned. The only waste produced is water vapor, making it among the cleanest energy sources available. So, it’s much cleaner than fossil fuels such as crude oil, natural gas, and coal.

Companies around the world are working to tap into the potential of emission-free fuel, seeing it as the purist and most responsible power source on the planet. Accounting firm Deloitte is forecasting that the global hydrogen market will be worth $1.4 trillion annually by 2050.

This prediction is based on the technology to extract energy from hydrogen improving and the energy source gaining greater acceptance. With hydrogen getting more attention, we asked artificial intelligence (AI) for its stock recommendations in the sector. Here are three hydrogen stocks that AI is loving in July.

Ballard Power Systems (BLDP)

AI is definitely loving Ballard Power Systems (NASDAQ:BLDP) since the hydrogen fuel cell tech company saw its share price jump 15% higher in a single trading session.

This happened during June, after the company announced plans to cut costs and boost its production with a brand new technology. Referring to its new system as a “disruptive manufacturing technology,” Ballard Power said it has the potential to increase its manufacturing of hydrogen fuel cells by ten times while lowering costs as much as 70%.

Analysts and investors were impressed, bidding the stock up sharply as a result. Year to date, BLDP stock is still down 3% after enduring a bruising decline during the 2022 tech wreck. However, over five years, the company’s share price has risen 63%.

Ballard specializes in hydrogen fuel cells for use on buses, commercial trucks, trains, marine vessels, and stationary power. The company is investing about $20 million in the new manufacturing technology. It is expecting this to have a noticeable and positive impact on its operations by 2025. Ballard added that its new manufacturing process will also use less energy and water, making it more environment-friendly.

Plug Power (PLUG)

Plug Power (NASDAQ:PLUG) is another maker of hydrogen fuel cells that has seen its stock struggle lately. So far in 2023, PLUG stock has declined 8%.

However, over five years, the share price has registered incredible growth, up 445%. The company has struck successful agreements to supply power to leading U.S. companies. One such corporation includes Walmart (NYSE:WMT), which is provided with nearly 20 tons per day of liquid green hydrogen. The energy powers the retailer’s distribution and fulfillment centers across America. Other partnerships involve French automobile manufacturer Renault.

Plug Power develops many of its fuel cells with Ballard Power, while also collaborating with each other on technology. Most of PLUG stock growth can be attributed to future growth potential. Plug Power aims to generate annual revenues of $1.4 billion in 2023 and expand that amount to $20 billion by 2030. The company is expecting its revenue to double this year from 2022, while striving to achieve a gross margin of 25% by 2024. Those lofty growth forecasts have caught the attention of investors and AI.

Linde (LIN)

Based in Europe, Linde (NYSE:LIN) is the world’s largest industrial gas company by revenue with annual sales of $33 billion. It is also a leading producer of hydrogen.

In fact, Linde is a member of the global Hydrogen Council. The group is a collection of companies that are investing heavily in hydrogen vehicles, believing they will compete with electric vehicles. Linde has gone so far as to invest millions of dollars into wind powered plants that convert water into hydrogen.

LIN stock has been a consistently strong performer, having gained 15% this year and 120% over the last five years. While the company still has a distance to realize its dream of competitive hydrogen vehicles, the company’s primary industrial gas business remains extremely strong.

Linde produces  and distributes so called “atmospheric gases” that including oxygen, nitrogen, argon, and helium. Business is booming, pushing the share price to new heights. LIN stock is currently trading near its 52-week high, making it a hydrogen stock with potential.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.