Bloom Energy (BE) Stock Drops 7% as Oracle Data Center Deal Hits Trouble

TLDR

• Bloom Energy stock fell about 7% Thursday after Oracle sent a force majeure notice tied to the Project Jupiter data center in New Mexico.
• Oracle stock dropped roughly 5% on the same news and is also facing scrutiny over the pace of its AI spending.
• The pipeline needed to power the New Mexico site has slipped from an August 2026 target to February 2027.
• Bloom’s S&P 500 inclusion triggered a “sell the news” reaction, adding to the drop.
• A securities class action lawsuit against Bloom has a lead-plaintiff deadline of September 28.

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Bloom Energy (BE) stock dropped as much as 7% on Thursday, while Oracle (ORCL) stock fell close to 5% in the same session. The move came after Bloomberg reported that Oracle sent a force majeure notice tied to Project Jupiter, a large AI data center under construction in New Mexico.

Bloom Energy Corporation, BE

Bloom Energy’s fuel cells are meant to supply power to Project Jupiter once it opens. That link is why the New Mexico news hit Bloom’s stock almost as hard as Oracle’s.

Oracle reportedly sent the notice to developer Blue Owl. The goal appears to be protecting Oracle from extra costs if the site doesn’t open on schedule in 2028, rather than backing out as the main tenant.

An Oracle spokesperson told Bloomberg the company remains “fully committed to New Mexico” and confident in its plan. The spokesperson did not directly address the force majeure notice itself.

Project Jupiter was already dealing with financing questions before Thursday. Loans worth $18 billion linked to the site were recently trading between 89 and 91 cents on the dollar, a sign banks have struggled to place the debt with investors.

Pipeline Delay Adds to the Pressure

A natural gas pipeline needed to generate electricity at the campus has also slipped. Completion has moved from an August 2026 target to February 2027 because of right-of-way approval issues.

That delay matters for Bloom because its fuel cells depend on that gas supply to run. Any holdup in construction timing pushes back when Bloom’s equipment can actually start generating revenue from the site.

Bloom’s drop also came just after its official addition to the S&P 500. Traders often sell a stock once a widely expected event actually happens, and that pattern appears to be part of Thursday’s move.

Rising Treasury yields and higher oil prices added further pressure on growth-oriented names like Bloom this week. On top of that, Bloom faces a September 28 deadline for lead plaintiffs in a securities class action lawsuit, which claims the company misled investors about its reliance on Chinese scandium.

Wall Street’s View on Both Companies

Oracle’s business itself keeps growing fast. Fiscal first-quarter revenue rose 30% year over year to $19.3 billion, and cloud revenue climbed 62% to $11.6 billion.

Oracle ended the quarter with $664 billion in remaining performance obligations. Management said the company delivered more than 300,000 GPUs to cloud customers and added 850 megawatts of data center capacity during the period.

Among 32 analysts covering Oracle, 27 rate it a Buy, four say Hold, and one recommends Sell. The average price target sits at $245.75, about 79% above current levels.

Bloom’s relationship with Oracle goes beyond just this one project. In April, the two expanded their partnership to cover up to 2.8 gigawatts of power capacity, with 1.2 gigawatts already under contract.

Bloom has also pointed to its 800-volt direct current design as a cost advantage for next-generation AI facilities. The company estimates this setup could cut non-compute capital spending by $3.6 billion at a hypothetical one-gigawatt data center.

Among 18 analysts covering Bloom, 10 rate it a Buy and eight say Hold, giving it a Moderate Buy consensus. The average price target is $281.39, about 11% above current levels.