Oracle Posts Best Week Since 1999 on Bloom Energy Deal
Oracle shares have rallied 32% this week after expanding its AI data center power partnership with Bloom Energy to 2.8 gigawatts.
Oracle just had its best week in 27 years.
Shares surged 32% over five sessions after the company expanded its power partnership with Bloom Energy to 2.8 gigawatts—enough capacity to run a major metropolitan area. The rally marks Oracle's strongest weekly performance since October 1999, when the dot-com boom was hitting its peak.
For a company that's spent the past year getting crushed on execution concerns, this is a sharp reversal.
The Deal
Oracle agreed to purchase up to 2.8 GW of fuel-cell power from Bloom Energy for AI data center operations. An initial 1.2 GW is already contracted for deployment this year and in 2027.
The arrangement solves one of the biggest bottlenecks in AI infrastructure: power. Data centers packed with NVIDIA GPUs consume enormous electricity. Traditional grid connections can take years to secure. Bloom's fuel cells offer on-site generation that bypasses utility queues entirely.
Oracle has committed to spending $50 billion on capital projects in the fiscal year ending May 2026. Much of that goes toward AI infrastructure for clients including OpenAI and xAI. Reliable power is table stakes.
Bloom's Windfall
Bloom Energy shares jumped 22% on the expanded partnership. The fuel-cell maker has emerged as a critical enabler of the AI buildout, offering rapid-deployment power solutions that hyperscalers are desperate to secure.
Adding to Bloom's good fortune: Oracle received a warrant to purchase $400 million of Bloom stock just four days before the deal expansion. That stake is now worth more than $370 million on paper.
| Stock | Week Performance |
|---|---|
| Oracle (ORCL) | +32% |
| Bloom Energy (BE) | +22% |
Why Now
Oracle's stock had been in a hole. Shares dropped 45% over the prior six months as investors worried about AI spending payoffs and slowing cloud growth.
The Bloom deal addresses the skepticism directly. It shows Oracle has a path to fulfilling massive AI infrastructure contracts. Power was the constraint; now there's a solution.
CEO Safra Catz said on the company's last earnings call that demand for Oracle Cloud Infrastructure is running well ahead of available capacity. The Bloom partnership helps close that gap.
The Bigger Picture
AI data center power has become a flashpoint across the sector. Meta signed nuclear deals with Vistra, Oklo, and TerraPower. Microsoft is exploring nuclear options. Amazon has locked up renewable capacity across multiple states.
Oracle's fuel-cell bet is different. Rather than waiting years for nuclear or utility buildout, Bloom's technology can be deployed in months. It's a pragmatic solution for a company racing to meet demand.
The question is cost. Fuel cells aren't cheap, and Oracle hasn't disclosed pricing terms. Margins on AI infrastructure contracts may compress if power costs run hot.
But that's a problem for next quarter. This week, Oracle reminded everyone it's still in the game. A 32% move in five days tends to do that.
For more on AI infrastructure plays, see our Sectors coverage.