Bloom Energy Shares Face Sharp Pullback After AI-Driven Rally

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Bloom Energy's stock has experienced a significant correction, marking a stark reversal following an extraordinary period of market performance. The shares, which soared on the back of the artificial intelligence and data center investment boom, are now under intense selling pressure. This shift in sentiment was triggered by disappointing results from a key partner, raising fresh questions about the durability of the AI investment narrative.

Despite the recent downturn, Bloom Energy's performance in 2025 remains remarkable. The stock is still up more than 250% since the start of the year. From a 52-week low of 14.37 euros, the price had skyrocketed to a peak of 123.56 euros before the current wave of profit-taking began.

The retreat to current levels represents a decline of approximately 34% from that 52-week high. This volatility underscores the market's skittish reaction to any new data from the AI ecosystem, especially when it involves pivotal partners and occurs at already elevated valuations.

Key data points illustrate the situation:

• Last Closing Price: 81.00 euros
• Single-Day Change: -12.77%
• Year-to-Date Performance (2025): +255.42%
• 52-Week Range: 14.37 to 123.56 euros

Technical indicators highlight the extreme conditions. The 14-day Relative Strength Index (RSI) sits at 92.1, deep in overbought territory. Meanwhile, an annualized 30-day volatility reading of nearly 120% signals an exceptionally turbulent security.

Oracle's Report Ignites a Sell-Off

The immediate catalyst for the plunge was a disappointing quarterly report from Oracle. The software giant, a central partner for Bloom Energy, missed revenue expectations for its second fiscal quarter and simultaneously announced significantly higher capital expenditures (capex). This rekindled existing market anxieties: Will the enormous capital required for AI infrastructure deliver returns as anticipated?

Bloom Energy is tightly linked to this theme. The company has positioned itself as an energy provider for data centers, supplying fuel cell systems for Oracle's AI facilities, among others. Consequently, any investor concern about a potential slowdown in AI-related spending directly impacts suppliers like Bloom.

Against this backdrop, many market participants seized the opportunity to realize profits after the extreme rally. On Friday, the equity fell 12.77% to 81.00 euros—a blow particularly to short-term buyers who entered positions in recent weeks.

Technical Breakdown and Sector Shifts

In the near term, the sell-off has clearly broken the stock's upward momentum. The share price now trades roughly 17% below its 50-day moving average of 97.34 euros. However, it remains substantially higher—over 70%—than its 200-day moving average of 47.20 euros. This suggests the long-term uptrend is technically intact, even as short-term sentiment has deteriorated markedly.

This movement coincides with a broader sector rotation. Stocks that benefited heavily from the AI infrastructure narrative are coming under pressure. Investors are shifting capital away from highly-valued early winners and reassessing whether the immense growth and margin expectations are realistic.

For Bloom Energy, this environment presents specific dynamics:

• Its reliance on major customers and partners like Oracle leaves the stock highly sensitive to their news flow.
• Any adjustment to investment plans in data centers and AI infrastructure has an immediate effect on its valuation.
• The core investment thesis—the structural need for additional, off-grid power for data centers—remains fundamentally unchanged.

Conclusion: A Powerful Narrative Meets a Sensitive Valuation

Ultimately, this is a stock that achieved enormous gains in a short period and is now demonstrating how sensitive such elevated levels are to negative signals. The combination of triple-digit annual gains, extreme volatility, and an overbought technical setup explains why weak results from Oracle could resonate so powerfully through the share price.

The coming weeks will be crucial in determining whether investment appetite in the AI and data center sector stabilizes or faces further headwinds. For Bloom Energy, the structural tailwind from rising data center energy demand remains a central pillar of the investment case. Simultaneously, this very focus makes the equity vulnerable to any broader reassessment of the AI infrastructure boom.