Why Is Bloom Energy Stock Plunging This Week?

Why Is Bloom Energy Stock Plunging This Week?
Why Is Bloom Energy Stock Plunging This Week?

  • Bloom Energy is betting big on building AI infrastructure for growth.

  • However, one of its clients is reportedly delaying the construction of some data centers.

  • Bloom Energy shares will continue to rise more than 300% in 2025.

  • 10 stocks we like better than Bloom Energy ›

Actions of flowering energy (NYSE: BE) plummeted 19.5% this week through 11:40 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence. There’s no company-specific news, but updates from a client are rattling investors in hydrogen stocks and forcing some to take some gains off the table.

Two people analyzing finances on paper with a laptop in the background showing a graph of falling stock prices.
Image source: Getty Images.

Bloom Energy’s hydrogen fuel cell power servers provide clean, reliable, uninterrupted on-site power, making them an excellent choice for artificial intelligence (AI) infrastructure and hyperscale data centers that require 24-hour power for their massive servers and cooling systems. Bloom Energy counts some of the world’s biggest names among its clients, including technology giants and cloud companies.

In July 2025, Oracle (NYSE: ORCL) chose Bloom Energy to deploy its fuel cell technology to select US data centers within 90 days. In October, Bloom Energy signed a $5 billion partnership with Brookfield Asset Management to build artificial intelligence factories powered by their fuel cell servers.

The construction of data center and artificial intelligence infrastructure is without a doubt one of the biggest growth opportunities for Bloom Energy. So when Oracle’s fiscal 2026 second-quarter revenue missed estimates this week and posted negative free cash flow (FCF) of $13 billion for the next four quarters, versus positive FCF of $9.5 billion for the comparable period in 2024, tech stocks tanked. So did Bloom Energy stock.

Oracle’s capital expenditures more than tripled to more than $35 billion over the past four quarters as it expanded its data center infrastructure.

But wait.

Isn’t more spending on data centers good for Bloom Energy?

It certainly is, but Oracle’s cash burn has stoked fears of an AI bubble, as many believe these companies are going too far and will soon be forced to cut their capital spending. Sure enough, a couple of days after Oracle’s earnings release, Bloomberg reported that the tech giant is delaying some of its data centers for OpenAI to 2028 from 2027.

Bloom Energy’s share price drop this week shouldn’t come as a surprise. With stocks soaring this year, investors found a reason to book some gains after Oracle’s earnings announcement and Bloomberg report.

However, none of this changes Bloom Energy’s long-term investment thesis. The truth is that AI infrastructure development might just be beginning, as hyperscalers and cloud computing companies continue to pour more and more money into data centers. Additionally, Bloom Energy technology has a place in almost all industries, not just data centers.

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Brookfield Asset Management and Oracle. The Motley Fool has a disclosure policy.

Why Is Bloom Energy Stock Plunging This Week? was originally published by The Motley Fool

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