Bloom Energy (BE) shares surged nearly 23% to hit a new all-time high of $218.69 on Tuesday, extending Monday’s massive rally as Wall Street cheered its expanded multi-gigawatt deal with Oracle (ORCL). Oracle stock also rose about 5% on Tuesday. Under the agreement, Bloom will provide fuel cell systems to power Oracle’s growing AI and cloud infrastructure.
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Trade BE with leverageFor context, Bloom Energy makes fuel cell systems that generate on-site power for data centers and large businesses. Meanwhile, Oracle is a cloud and software company that provides infrastructure and services to enterprises worldwide.
Top Analysts Turn More Bullish on Bloom Energy
Top RBC Capital analyst Christopher Dendrinos reiterated an Outperform rating on Bloom Energy with a $143 price target. The 5-star analyst noted that the agreement removes uncertainty around the timing of a potential deal and signals strong demand ahead. Dendrinos also pointed out that, along with other potential partnerships, Bloom could see demand exceed its current 2 GW per year capacity plans.
Similarly, Evercore ISI analyst Nicholas Amicucci also maintained an Outperform rating with a $179 price target, calling the expanded deal a clear sign that AI-driven power demand is accelerating. He highlighted that large tech companies are increasingly turning to on-site power solutions to meet the growing needs of AI data centers, positioning Bloom as a key beneficiary of this trend.
Expanded Oracle Deal Supports Growth
According to the terms of the deal, Oracle has committed to an initial 1.2 gigawatts of capacity, with deployment already underway across projects in the U.S. and continuing into next year. The deal also includes an option to expand up to 2.8 gigawatts, pointing to further growth ahead.
The deal builds on an existing partnership between the two companies. In a previous project, Bloom delivered a fuel cell system to Oracle in just 55 days, faster than the expected 90-day timeline.
Bloom said its systems are designed to handle the heavy power needs of AI data centers and can be installed more quickly than traditional power solutions.
BE or ORCL: Which Is the Better Stock, According to Analysts?
Using TipRanks’ Comparison Tool, we compared Bloom Energy and Oracle. Analysts clearly favor Oracle, which carries a Strong Buy rating and offers about 57% upside, while Bloom Energy has a Moderate Buy rating and points to downside from current levels.
