Oracle Partners with Bloom Energy on Major Power Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy ORCL?
Source: NASDAQ.COM
- Stock Price Surge: Oracle closed at $163.00 on Tuesday, up 4.74%, primarily driven by a significant data center power deal with Bloom Energy, indicating strong market confidence in its future growth prospects.
- Trading Volume Spike: The trading volume reached 58.2 million shares, exceeding the three-month average of 28.1 million shares by 107%, reflecting heightened investor interest in Oracle's stock and potentially signaling a shift in market sentiment.
- AI Infrastructure Expansion: The expanded fuel-cell agreement with Bloom Energy will provide up to 2.8 gigawatts of power for Oracle's AI infrastructure, illustrating the company's transition from a traditional software provider to an infrastructure firm poised to benefit from AI growth, thereby enhancing its competitive position.
- Investor Caution: Despite Oracle's recent rebound of nearly 14%, it was not included in The Motley Fool's list of top investment stocks, suggesting that investors should exercise caution given its over 45% decline in stock price over the past six months.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 178.340
Low
180.00
Averages
309.59
High
400.00
Current: 178.340
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oracle's Stock Volatility and Future Challenges
- Stock Volatility: Oracle's stock price hit an all-time high of $346 last September but has since plummeted over 50%, reaching a low of $130, with the current price at $175.02, indicating significant market uncertainty regarding its future.
- Analyst Optimism: Despite the stock's decline, 28 out of 35 analysts rate it a buy or strong buy, with a median price target of $260, suggesting approximately 60% upside, reflecting strong confidence in its cloud business growth.
- Rising Debt Burden: Oracle's total debt has ballooned to $149 billion, nearly double from three years ago, and it issued $43 billion in new bonds in the first nine months of fiscal 2026, indicating capital expenditures far exceed operating cash flow, resulting in a $24.7 billion free cash flow deficit.
- Investment Risks Ahead: While Oracle's cloud revenue grew 44% year-over-year to $8.9 billion, its high capital expenditures in transforming into an AI infrastructure player may resemble operational expenses, prompting caution among long-term investors about the feasibility of its ambitious transformation plans.
See More
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- Investor Sentiment Recovery: As peace talks between the U.S. and Iran progress, investor fears regarding the Middle East diminish, leading to a renewed focus on growth stocks, particularly in artificial intelligence, which boosts related tech stock performance.
- Credo Acquisition Expansion: Credo's agreement to acquire DustPhotonics is expected to elevate its optical revenue to over $500 million by fiscal 2027, further solidifying its market position in AI data centers.
- Oracle Partnership Expansion: Oracle's partnership with Bloom Energy has expanded to include a 1.2 GW fuel cell contract, which is anticipated to enhance energy efficiency in its cloud data centers, while its multicloud database revenue surged by 531% in the quarter ending February 28.
- CoreWeave Major Deal Signing: CoreWeave's $21 billion agreement with Meta Platforms for AI cloud computing capacity through December 2032 has led analysts to raise their stock price forecasts, contributing to a rise in CoreWeave's stock price.
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- Strong Market Performance: The S&P 500 rose 4.5%, the Nasdaq Composite surged 6.8%, and the Dow Jones increased by 3.2% this week, reflecting investor optimism driven by positive developments in the Middle East, pushing the markets to new highs.
- Goldman Sachs Beats Expectations: Goldman Sachs reported Q1 GAAP EPS of $17.55, exceeding the $16.39 analyst estimate, with total revenue of $17.2 billion, significantly up from $13.5 billion a year ago, showcasing the firm's robust performance in the financial sector.
- Netflix's Dim Outlook: Netflix's second-quarter outlook fell short of expectations, projecting only 13% revenue growth and maintaining its 2026 revenue guidance between $50.7 billion and $51.7 billion, below market estimates, leading to a decline in its stock price.
- Bloom Energy Partnership Expansion: Oracle expanded its partnership with Bloom Energy to procure up to 2.8 GW of fuel cell capacity for AI data centers, with an initial 1.2 GW contracted, highlighting the surging demand for rapid deployment energy solutions in the tech sector.
See More
Oil Prices Drop as Tech Stocks Surge Amid Peace Talks
- Oil Price Decline: Oil prices fell this week as peace talks between the U.S. and Iran progressed, alleviating investor fears of a recession driven by Middle Eastern events, which shifted focus back to investable trends like artificial intelligence.
- Credo Technology Expansion: Credo Technology's agreement to acquire DustPhotonics is expected to boost its optical revenue to over $500 million by fiscal 2027, significantly enhancing its market position in AI data centers.
- Oracle Cloud Growth: Oracle's partnership with Bloom Energy for a 1.2GW fuel cell contract will power its cloud data centers, while collaboration with Amazon Web Services aims to enhance cross-cloud solutions, with multicloud database revenue soaring 531% year-over-year.
- CoreWeave Major Deals: CoreWeave's $21 billion agreement with Meta Platforms for AI cloud computing capacity and a multi-year deal with Anthropic have led analysts to raise price forecasts for its shares, contributing to a rise in stock value.
See More
Market Dynamics: The Tug-of-War Between Bonds and Oil Prices
- Bond Market Stability: The slight decline in bond yields indicates a stable market outlook, which helps support the stock market, particularly amid oil price fluctuations, thereby reducing investor panic.
- Tech Stock Recovery: The so-called 'Magnificent Seven' tech companies, including Alphabet and Amazon, are beginning to reap benefits from their previous high expenditures, enhancing market confidence in their future profitability, which could drive further market gains.
- Rise of the AI Economy: The emergence of AI agents is expected to significantly reduce hiring and operational costs for enterprises, driving demand for chips like Nvidia's, which will further boost growth for related companies.
- Improved Investor Sentiment: Despite ongoing market uncertainties, the combination of low bond yields and strong performance from tech stocks fosters an optimistic outlook among investors, potentially attracting more capital into the stock market.
See More
Virginia Data Center Raises Health Concerns Over Emissions
- Health Risk Assessment: A study by the Piedmont Environmental Council indicates that Vantage Data Center in Loudoun County, with its 51 diesel generators and 8 natural gas turbines, could lead to 3.4 to 6.5 premature deaths annually and nearly $100 billion in health-related damages, highlighting the potential threat to surrounding communities.
- Long-term Impact Forecast: The number of premature deaths is projected to rise to 33 over five years and nearly 200 over 30 years, with health costs potentially soaring to almost $3 billion, reflecting the profound implications of data center expansion on public health.
- Pollution Dispersion Risks: A study from Caltech and UC Riverside found that air pollutants like PM2.5 can travel hundreds of miles, indicating that even residents far from data centers may face health risks, underscoring the importance of air quality monitoring.
- Policy and Community Response: While Vantage claims its emissions are below state limits, community protests against data centers are increasing, with 25 projects canceled in 2025, demonstrating public concern over health risks and the demand for policy changes.
See More
Oracle's Stock Volatility and Future Challenges
- Stock Volatility: Oracle's stock price hit an all-time high of $346 last September but has since plummeted over 50%, reaching a low of $130, with the current price at $175.02, indicating significant market uncertainty regarding its future.
- Analyst Optimism: Despite the stock's decline, 28 out of 35 analysts rate it a buy or strong buy, with a median price target of $260, suggesting approximately 60% upside, reflecting strong confidence in its cloud business growth.
- Rising Debt Burden: Oracle's total debt has ballooned to $149 billion, nearly double from three years ago, and it issued $43 billion in new bonds in the first nine months of fiscal 2026, indicating capital expenditures far exceed operating cash flow, resulting in a $24.7 billion free cash flow deficit.
- Investment Risks Ahead: While Oracle's cloud revenue grew 44% year-over-year to $8.9 billion, its high capital expenditures in transforming into an AI infrastructure player may resemble operational expenses, prompting caution among long-term investors about the feasibility of its ambitious transformation plans.
See More
Middle East Peace Prospects Boost Tech Stocks
- Investor Sentiment Recovery: As peace talks between the U.S. and Iran progress, investor fears regarding the Middle East diminish, leading to a renewed focus on growth stocks, particularly in artificial intelligence, which boosts related tech stock performance.
- Credo Acquisition Expansion: Credo's agreement to acquire DustPhotonics is expected to elevate its optical revenue to over $500 million by fiscal 2027, further solidifying its market position in AI data centers.
- Oracle Partnership Expansion: Oracle's partnership with Bloom Energy has expanded to include a 1.2 GW fuel cell contract, which is anticipated to enhance energy efficiency in its cloud data centers, while its multicloud database revenue surged by 531% in the quarter ending February 28.
- CoreWeave Major Deal Signing: CoreWeave's $21 billion agreement with Meta Platforms for AI cloud computing capacity through December 2032 has led analysts to raise their stock price forecasts, contributing to a rise in CoreWeave's stock price.
See More
U.S. Major Averages Surge to New Highs Amid Middle East Developments
- Strong Market Performance: The S&P 500 rose 4.5%, the Nasdaq Composite surged 6.8%, and the Dow Jones increased by 3.2% this week, reflecting investor optimism driven by positive developments in the Middle East, pushing the markets to new highs.
- Goldman Sachs Beats Expectations: Goldman Sachs reported Q1 GAAP EPS of $17.55, exceeding the $16.39 analyst estimate, with total revenue of $17.2 billion, significantly up from $13.5 billion a year ago, showcasing the firm's robust performance in the financial sector.
- Netflix's Dim Outlook: Netflix's second-quarter outlook fell short of expectations, projecting only 13% revenue growth and maintaining its 2026 revenue guidance between $50.7 billion and $51.7 billion, below market estimates, leading to a decline in its stock price.
- Bloom Energy Partnership Expansion: Oracle expanded its partnership with Bloom Energy to procure up to 2.8 GW of fuel cell capacity for AI data centers, with an initial 1.2 GW contracted, highlighting the surging demand for rapid deployment energy solutions in the tech sector.
See More
Oil Prices Drop as Tech Stocks Surge Amid Peace Talks
- Oil Price Decline: Oil prices fell this week as peace talks between the U.S. and Iran progressed, alleviating investor fears of a recession driven by Middle Eastern events, which shifted focus back to investable trends like artificial intelligence.
- Credo Technology Expansion: Credo Technology's agreement to acquire DustPhotonics is expected to boost its optical revenue to over $500 million by fiscal 2027, significantly enhancing its market position in AI data centers.
- Oracle Cloud Growth: Oracle's partnership with Bloom Energy for a 1.2GW fuel cell contract will power its cloud data centers, while collaboration with Amazon Web Services aims to enhance cross-cloud solutions, with multicloud database revenue soaring 531% year-over-year.
- CoreWeave Major Deals: CoreWeave's $21 billion agreement with Meta Platforms for AI cloud computing capacity and a multi-year deal with Anthropic have led analysts to raise price forecasts for its shares, contributing to a rise in stock value.
See More
Market Dynamics: The Tug-of-War Between Bonds and Oil Prices
- Bond Market Stability: The slight decline in bond yields indicates a stable market outlook, which helps support the stock market, particularly amid oil price fluctuations, thereby reducing investor panic.
- Tech Stock Recovery: The so-called 'Magnificent Seven' tech companies, including Alphabet and Amazon, are beginning to reap benefits from their previous high expenditures, enhancing market confidence in their future profitability, which could drive further market gains.
- Rise of the AI Economy: The emergence of AI agents is expected to significantly reduce hiring and operational costs for enterprises, driving demand for chips like Nvidia's, which will further boost growth for related companies.
- Improved Investor Sentiment: Despite ongoing market uncertainties, the combination of low bond yields and strong performance from tech stocks fosters an optimistic outlook among investors, potentially attracting more capital into the stock market.
See More
Virginia Data Center Raises Health Concerns Over Emissions
- Health Risk Assessment: A study by the Piedmont Environmental Council indicates that Vantage Data Center in Loudoun County, with its 51 diesel generators and 8 natural gas turbines, could lead to 3.4 to 6.5 premature deaths annually and nearly $100 billion in health-related damages, highlighting the potential threat to surrounding communities.
- Long-term Impact Forecast: The number of premature deaths is projected to rise to 33 over five years and nearly 200 over 30 years, with health costs potentially soaring to almost $3 billion, reflecting the profound implications of data center expansion on public health.
- Pollution Dispersion Risks: A study from Caltech and UC Riverside found that air pollutants like PM2.5 can travel hundreds of miles, indicating that even residents far from data centers may face health risks, underscoring the importance of air quality monitoring.
- Policy and Community Response: While Vantage claims its emissions are below state limits, community protests against data centers are increasing, with 25 projects canceled in 2025, demonstrating public concern over health risks and the demand for policy changes.
See More
