Bloom Energy (NYSE:BE) stock is up 14% in early trading today, and Oracle (NYSE:ORCL | ORCL Price Prediction) stock is up 7%, after the two companies announced an expanded partnership to deploy up to 2.8 gigawatts of fuel cell capacity for AI and cloud data centers. The deal signals that on-site power generation has become a core infrastructure requirement for hyperscale computing.
Bloom Energy CEO KR Sridhar captured the shift in the company’s most recent earnings call, stating, “Bring-your-own-power has shifted from a slogan to a business necessity for AI hyperscalers and manufacturing facilities. This shift is secular and growing.” That thesis is now backed by a concrete, large-scale commercial agreement with one of the world’s largest cloud operators.
BE stock has already had a remarkable run heading into today. Shares are up 103% year-to-date, rising from $86.89 at the start of 2026 to $176.67 as of April 13. Today’s move builds on that momentum and reflects growing investor conviction that Bloom’s fuel cell platform is purpose-built for the AI power crisis.
Expanded Oracle Deal Anchors the Move
The partnership between Oracle and Bloom Energy was first announced in July 2025, but today’s expansion to 2.8 gigawatts represents a meaningful escalation in scope. As part of the agreement, Bloom Energy issued Oracle a warrant to purchase up to 3.53 million shares of Bloom Energy Class A common stock at an exercise price of $113.28 per share. The warrant is immediately exercisable, fully vested, and expires October 9.
That warrant structure gives Oracle direct financial exposure to Bloom’s upside, aligning both companies around execution. It’s a sign of partnership depth that goes well beyond a typical vendor agreement.
Bloom’s fundamentals support the optimism. Q4 2025 revenue came in at $777.68 million, up 36% year-over-year, with non-GAAP EPS of $0.45 against a consensus estimate of $0.30. The company’s total backlog stands at approximately $20 billion, with product backlog up approximately 2.5x year-over-year to $6 billion. Management has guided for FY2026 revenue of $3.1 billion to $3.3 billion, representing over 50% year-over-year growth.
One data point stands out above the rest. Bloom Energy’s related-party revenue in Q4 2025 reached $574.2 million, compared to just $3 million in Q4 2024, reflecting the rapid ramp of Bloom’s $5 billion strategic AI infrastructure partnership with Brookfield Asset Management. The Oracle deal adds another major anchor customer to that growing revenue base.
Oracle’s AI Infrastructure Bet Gets Bigger
For Oracle, the expanded Bloom Energy partnership fits squarely into its aggressive AI infrastructure buildout. Oracle’s most recent quarter showed IaaS revenue of $4.89 billion, up 84% year-over-year, with Remaining Performance Obligations surging 325% to $553 billion. Management has stated that “demand for cloud infrastructure for AI training and inferencing continues to grow faster than supply.”
Securing reliable on-site power is a direct response to that supply constraint. Oracle operates more than 211 live and planned cloud regions worldwide and has guided for FY2027 total revenue of $90 billion, a target that depends on continued data center expansion. Fuel cell capacity that can be deployed quickly, without grid dependency, is a strategic asset in that context.
Retail sentiment on Oracle stock has been polarized, with bearish commentary around executive compensation and layoffs earlier this month giving way to a bullish shift on April 14 following AI and infrastructure announcements. Investors debating the Oracle thesis should also consider the context laid out in our recent coverage of the Oracle stock price drop vs. Wall Street target, which examined the gap between analyst expectations and recent trading levels.
What to Watch
Bloom Energy is also doubling its factory capacity from 1 gigawatt to 2 gigawatts by year-end, which will be critical to fulfilling a 2.8-gigawatt commitment at scale. Execution on that capacity ramp is the clearest near-term risk to watch. The analyst consensus on BE stock currently sits at a price target of $143.80, with 13 buy ratings, 11 holds, and 4 sells, suggesting the stock has run well ahead of where most analysts modeled it heading into today.
Watch for whether Oracle provides further detail on the Bloom Energy partnership at upcoming investor events, and whether Bloom Energy updates its backlog figures to reflect the expanded deal size. Both stocks could remain active through the close as the market digests the full scope of the agreement.
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