Oracle shares rose about 6% Tuesday after the company expanded its partnership with Bloom Energy to support growing energy needs for AI data centers. The agreement builds on a broader rebound in software stocks and reflects increasing demand for power infrastructure as companies scale artificial intelligence workloads.
Under the expanded deal, Oracle plans to procure up to 2.8 gigawatts of Bloom Energy’s fuel cell systems. The move comes days after Oracle secured a warrant to purchase $400 million worth of Bloom stock, signaling deeper alignment between the two companies. Bloom Energy shares surged 23% following the announcement.
The rally also lifted other software firms, including Palantir, AppLovin, HubSpot, Salesforce, and ServiceNow, though gains were more modest. The sector has faced recent pressure amid concerns that AI could disrupt traditional software business models and increase financial risks tied to private credit exposure.
Oracle has been aggressively investing in infrastructure to support AI growth, raising more than $100 billion in debt to expand its data center footprint. The company is also a key partner in the Stargate project, a large-scale initiative focused on next-generation AI infrastructure. Despite the recent rebound, Oracle shares remain down roughly 15% this year, reflecting broader volatility in the sector.
