TLDR
- Shares of Bloom Energy rallied 8% on Friday, reaching approximately $288.70 and leading the S&P 500 in performance.
- Morgan Stanley analysts calmed investor fears, confirming Oracle’s force majeure filing poses no risk to Bloom Energy’s contract.
- The notice was issued by Oracle to Stack Infrastructure as a precautionary measure regarding potential Project Jupiter delays.
- Analysts maintained their Overweight rating with a $310 target, emphasizing the project isn’t included in Bloom’s 2026 projections.
- The potential delays stem from regulatory permitting issues, not any problems with Bloom’s fuel cell systems.
Bloom Energy (BE) shares surged 8% during Friday’s trading session, finishing near $288.70. The performance positioned it as the top gainer within the S&P 500 index.
The strong performance came after investor anxiety from Thursday’s session. Oracle (ORCL) had filed a force majeure notification with Stack Infrastructure, the firm developing its Project Jupiter data center facility in New Mexico.
This notification was designed to protect Oracle from payment responsibilities should construction delays extend beyond 2028. The disclosure triggered a nearly 2% decline in Oracle shares on Thursday.
Bloom shareholders initially reacted with concern, considering the company’s agreement to deliver up to 2.45 gigawatts of solid-oxide fuel cell technology for the facility. However, sentiment reversed quickly after Wall Street analysts issued their assessments.
Morgan Stanley’s David Arcaro informed investors that the force majeure filing appears to be a standard legal precaution rather than a warning sign. His analysis concluded that Bloom Energy faces no material risk from the situation.
Arcaro maintained his Overweight recommendation on Bloom shares along with his $310 price objective. He emphasized that Project Jupiter revenue isn’t incorporated into Bloom’s fiscal 2026 forecasts, meaning current year projections remain unaffected regardless of the situation’s outcome.
Understanding the Source of Delays
The potential delays have no connection to Bloom’s technology or manufacturing capabilities. Arcaro identified the issues as stemming from a 17-mile natural gas pipeline awaiting regulatory approval, along with outstanding air quality permits from New Mexico authorities.
According to Arcaro’s analysis, even under the most pessimistic scenario, Bloom Energy maintains a strong position. Should the New Mexico facility face cancellation or indefinite postponement, contractual provisions allow Oracle to reallocate the fuel cell shipments to alternative data center developments.
Bloom Energy issued its own clarification on the matter. Through a statement posted on X on Thursday, the company confirmed that Oracle “remains committed to Project Jupiter and its contract with Bloom to deliver 2.4 GW of fuel cell capacity.”
Oracle corroborated this position in comments to Barron’s. A company representative explained that force majeure notifications are routine in major infrastructure projects and serve primarily to maintain contractual flexibility between collaborating parties. The spokesperson clarified that filing such notices doesn’t automatically indicate delays or modifications to delivery schedules.
Context for the Broader Partnership
Project Jupiter represents a component of the expansive Stargate program, a collaborative effort between Oracle and OpenAI. The New Mexico facility is expected to attract an initial $50 billion in capital investment, with aggregate spending potentially climbing to $165 billion across three decades.
Friday’s gains extended an impressive run for Bloom shares. The stock is headed for its strongest monthly performance since April, when it soared 109%. Year-to-date, shares have appreciated 232%.
Market activity was notably elevated, with approximately 17.3 million shares traded, representing a 34% increase over typical session volumes.
Analyst sentiment has been generally favorable though mixed. Mizuho recently upgraded its price objective to $351 from $242, while additional firms including BTIG and Jefferies have similarly increased their targets in recent quarters.
Stack Infrastructure, the development company referenced in Oracle’s filing, operates under the ownership of Blue Owl Capital. That company’s shares advanced 0.7% on Friday.
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