Bloom Energy Shares Plunge on AI Infrastructure Concerns

Bloom Energy US0937121079

Bloom Energy equity suffered its most severe weekly decline in months, plummeting nearly 20 percent. The catalyst was not internal company issues, but rather mounting investor anxiety surrounding a major client and the sustainability of artificial intelligence infrastructure spending. Weak quarterly results from Oracle Corporation, coupled with news of delayed data center projects, triggered the sell-off.

Operationally, Bloom Energy continues to demonstrate strength. In October, the company reported earnings of $0.15 per share on revenue of $519 million, significantly surpassing analyst forecasts and representing a 57 percent year-over-year increase. The firm's strategic direction remains focused, with its $5 billion partnership with Brookfield Asset Management for AI data centers, announced in October 2025, still progressing. A European site is expected to be announced before year-end. Industry projections indicate U.S. AI data center power demand could exceed 100 gigawatts by 2035, a market for which Bloom's fuel cell technology is well-suited.

Despite this positive backdrop, the stock's valuation metrics are demanding. It trades at a price-to-earnings ratio of 563, with a debt-to-equity ratio approaching 2.0. The shares closed Friday's session at 81 euros, having slid from nearly 103 euros on Thursday. Trading volume was notably elevated at 16.2 million shares. Even after the weekly loss, the stock remains up more than 255 percent since the start of the year. A Relative Strength Index (RSI) reading of 92.1 signals an extremely overbought condition, while a beta of 3.0 highlights the equity's high volatility and investor nervousness.

Oracle's Report Ignites Fears

The downturn commenced following Oracle's quarterly earnings release. The cloud computing giant, which had selected Bloom Energy in July 2025 to power its U.S. data centers, delivered disappointing results across key metrics. Revenue fell short of expectations, and the company's free cash flow turned negative, reporting minus $13 billion over the past four quarters compared to a positive $9.5 billion in the prior-year period.

This reversal was driven by Oracle's capital expenditures, which tripled to over $35 billion, primarily for data center construction. While such investment should, in theory, benefit Bloom Energy as a power provider, the market interpreted the massive capital commitment as a cautionary sign. Investors began questioning whether the breakneck pace of AI-related expenditure is sustainable or indicative of a potential bubble.

Project Delays Amplify Uncertainty

Concerns were compounded by a Bloomberg report indicating Oracle is pushing back the timeline for data centers dedicated to OpenAI, moving the completion target from 2027 to 2028. This delay directly impacts Bloom Energy, which has strategically positioned itself to supply power for precisely this category of large-scale project. The initial partnership announcement had anticipated the first fuel cell installations within 90 days.

The postponement fuels broader doubts about whether the speed of AI infrastructure investment will maintain its previously expected trajectory. Other companies seen as beneficiaries of the AI boom, such as AMD and Vertiv, also faced selling pressure in the wake of the news.

The upcoming quarterly results from Bloom Energy will be closely scrutinized for evidence of whether its order pipeline remains robust or if hesitation among major hyperscale clients is beginning to materialize.