Bloom Energy (BE) just inked a major AI power deal with Oracle, sending the stock flying nearly 23% on Thursday. But some analysts aren’t ready to plug in just yet.
Earlier this month, J.P. Morgan upgraded Bloom to Overweight from Neutral, raising its price target to $33 from $18.
The move came after President Trump’s Big Beautiful Bill expanded tax credits to include fuel cells under the Internal Revenue Code.
That’s a big win for Bloom’s business model, which revolves around fuel cell systems powered by hydrogen or natural gas.
In his note, J.P. Morgan analyst Mark Strouse said the incentives could “push hesitant customers over the finish line,” and expects the new subsidies to “drive pricing power with data-center clients,” as reported by Barron’s.
Enter Oracle.
On Thursday, Bloom announced a new partnership with Oracle Cloud Infrastructure (OCI) to supply power to select U.S. data centers. The company claims it will power entire Oracle data centers to meet the surging demand from AI and cloud services.
“This significant collaboration provides Oracle with ultra-reliable, clean, and cost-efficient power that supports its growth strategy with the speed and certainty it needs,” said Aman Joshi, Bloom’s chief commercial officer.
The timing isn’t random. Oracle recently revealed in an 8-K filing that it had landed a $30 billion cloud deal with a mystery client. According to The Wall Street Journal, that client is likely OpenAI.
So while Microsoft dominates the headlines with its OpenAI ties, Oracle is making stealth moves to build the infrastructure and Bloom is right there with it.
Fuel cells in a red state
On the surface, Bloom might seem like an odd fit in a Trump-era market defined by aggressive clean energy rollbacks. But the company has deep roots in data centers, and its hydrogen-powered systems are being repackaged as mission-critical AI infrastructure.
Long before the Oracle deal, Bloom was already working with data center clients like American Electric Power (AEP) on multi-gigawatt fuel cell deployments.
That context matters. Bloom is positioning itself as infrastructure, not ideology — a strategy that might be its biggest edge in the current climate.
But not everyone is buying it. Bank of America held firm on its Underperform rating and $20 price target this week, warning investors that scaling “beyond pilots to large multi-site deployments is still a work in progress.”
Despite a compelling narrative, Bloom’s actual financial track record is spotty. The company has only reported one quarter of operating profit in its 24-year history.
Yet the stock is up 48.9% year-to-date, and if these AI deals translate into meaningful deployments, skeptics may need to update their models fast.
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