Bloom Energy’s Stock (BE) Hit’s Highest Level In Years on Oracle Partnership

Bloom Energy's stock (NYSE: BE) surged to a new high of $33.91, as its collaboration with Oracle to power the tech giant's artificial intelligence (AI) data centers set off a big move higher. The stock’s 22.95% gain on the day reflects the excitement in the deal and Bloom's potential to capitalize on the burgeoning AI and cloud computing sectors.

Bloom Energy's partnership with Oracle involves deploying its fuel cell technology at select Oracle Cloud Infrastructure (OCI) data centers across the United States. This initiative aims to meet the increasing demand for OCI's AI and cloud computing services by providing reliable and cost-efficient onsite power. Bloom Energy has committed to delivering the necessary power for an entire data center within an impressive 90-day timeframe.

Mahesh Thiagarajan, Executive Vice President of Oracle Cloud Infrastructure, highlighted the strategic importance of the collaboration, stating that Bloom’s fuel cell technology will support OCI’s cutting-edge AI infrastructure with reliable, clean power. This partnership underscores Oracle's commitment to integrating sustainable energy solutions into its operations, aligning with global sustainability goals.

While the Oracle partnership has ignited bullish sentiment, technical indicators suggest the stock may be entering overbought territory.

The 14-day Relative Strength Index (RSI) stands at 74.81, signaling a potential for a near-term pullback or consolidation.

With the company scheduled to announce its next quarterly financial results at the end of the month, there could be some moves ahead. Analyst consensus estimates for the upcoming quarter project earnings of $0.01 per share. This follows a recent quarter where BE surprised the market with $0.03 earnings per share, exceeding expectations of a loss.

Recent upgrades from UBS and JPMorgan cite potential benefits from tax credits and scalable deployment models. JPMorgan's price target of $33 assumes improved margins in fiscal year 2026, while UBS projects second-quarter 2025 revenue of $365 million, up from $326 million in the first quarter.

BofA meanwhile reiterated an Underperform rating on the stock, and $20 price target in yesterday's session, which was duly shrugged off.

The data center market is competitive, and Bloom's long-term success hinges on its ability to maintain a technological edge and secure additional large-scale partnerships.

The collaboration between Bloom Energy and Oracle underscores a broader trend in the data center industry.

As AI and cloud computing drive explosive growth in data center demand, power availability remains a major bottleneck.

Data centers are increasingly adopting onsite power systems as primary energy sources, reflecting the industry's drive for innovative solutions to address economic imperatives and ease pressure on aging power grids.

The company estimates that 35 gigawatts (GW) of data center capacity will be announced within the next five years, equivalent to over six times the average energy capacity used by New York City annually.

All eyes will likely shift to earnings, where further insights and guidance could well set the stage for the next leg.