MW Bloom Energy's stock is surging - and could ride Oracle's growth to even more gains

By James Rogers

Bloom shares have more than tripled this year, and Morgan Stanley says the clean-tech company's work with Oracle sets the stage for 'explosive' momentum

Bloom Energy shares have outperformed Oracle shares over the past week.

Bloom Energy Corp. shares have staged a strong rally this year and now stand to capitalize further on Oracle Corp.'s swelling artificial-intelligence backlog.

The clean-energy company struck an agreement with the cloud giant in July that will see Oracle Cloud Infrastructure data centers harness Bloom's fuel-cell technology to support demand for the tech company's AI and cloud-computing services. The deal effectively ties the San Jose, Calif.-based company to Oracle's $(ORCL)$ cloud-computing growth and means Bloom (BE) itself is poised to see strong momentum, according to Morgan Stanley analyst David Arcaro.

Oracle said last week that it had clinched four multibillion-dollar contracts that could turbocharge growth in the years to come. Bloom's stock has risen 31% over the past week, outpacing Oracle's 26% surge in the same span.

Bloom Energy now has a more credible path to "explosive growth," according to Morgan Stanley's Arcaro, who raised his price target on the stock to $85 from $44 Tuesday while keeping an overweight rating. "We think Bloom has now become much more clearly, favorably positioned for success in powering AI data centers," he added.

The analyst noted that the supply of power for data centers is tightening across both the traditional grid and small-scale alternatives. However, Bloom Energy can ship and install its fuel-cell technology within 90 days and can also rapidly expand its capacity, doubling it to 2 gigawatts in under six months, he said.

Buoyed by the Oracle connection, shares of Bloom Energy have risen 224% in 2025. The stock, which was at $23.37 to start the year, was trading at $71.99 Tuesday afternoon on the heels of a 7%-plus intraday gain.

Bloom Energy, which uses solid oxide fuel cells to generate electricity, says that it has deployed 1.5 gigawatts of low-carbon power across more than 1,200 sites around the world.

Of 25 analysts surveyed by FactSet, 12 have an overweight or buy rating, 11 have a hold rating and two have a sell rating for Bloom Energy.

-James Rogers

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September 16, 2025 14:41 ET (18:41 GMT)

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