Shares of Bloom Energy (BE) jumped 23% on Thursday after the company announced a major partnership with Oracle (ORCL). Under this deal, ORCL’s U.S. AI data centers will be powered using Bloom’s fuel cell technology. The deal marks a major win for Bloom, positioning its clean energy solutions as a key part of the booming AI data center market.
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As per the agreement, Bloom will deliver on-site, fuel cell-generated power to select Oracle Cloud Infrastructure (OCI) facilities, aiming to get each site fully running in just 90 days. This rapid deployment and reliable energy are key as AI workloads need stable and scalable power.
Importantly, Oracle is the latest tech company to choose Bloom for data center power, joining others like Equinix (EQIX) and Quanta Computing. As AI firms rush to grow, Bloom’s clean and affordable energy is emerging as a strong alternative to traditional grid power.
It must be noted that BE stock has gained over 46% so far in 2025, due to optimism over its expanding client base and rising demand for sustainable energy in tech infrastructure.
BofA Analyst Keeps a Sell Rating on BE Stock
Despite the positive news, Bank of America analyst Dimple Gosai reiterated a Sell rating on Bloom Energy stock but raised the price target to $20 (39.2% downside) from $16.
The analyst highlighted Bloom’s claim that about 30% of future data centers might use on-site power generation, and it has already deployed over 400 megawatts to data centers.
However, the analyst believes that the company still needs to prove it can scale beyond small pilot projects to larger, multi-site deals. Also, Gosai seeks better transparency, stronger sales growth, and improved profit margins before changing her view.
Is Bloom Energy a Buy, Sell, or Hold?
Turning to Wall Street, BE stock has a Moderate Buy consensus rating based on eight Buys, seven Holds, and one Sell assigned in the last three months. At $26.19, the average Bloom Energy stock price target implies a 19.81% downside potential.
