Key Takeaways
- Bloom Energy shares surged 8% on Friday, reaching approximately $288.70 and topping the S&P 500’s daily gainers.
- The rally followed Morgan Stanley’s confirmation that Oracle’s force majeure filing poses no threat to Bloom Energy’s business.
- Oracle issued the notice to Stack Infrastructure as a precautionary measure regarding potential delays at its Project Jupiter facility.
- Morgan Stanley maintained its Overweight stance with a $310 target, emphasizing the project falls outside Bloom’s 2026 projections.
- Permit issues related to pipeline construction and air quality regulations are causing delays, not Bloom’s technology.
Shares of Bloom Energy (BE) jumped 8% during Friday’s trading session, settling near $288.70. The performance positioned it as the S&P 500’s strongest performer for the day.
The upward movement came after investor anxiety from the previous day. Oracle (ORCL) had delivered a force majeure notification to Stack Infrastructure, which is developing the Project Jupiter data center complex in New Mexico.
The communication seeks to postpone possible payment commitments should construction delays extend beyond 2028. Oracle shares declined nearly 2% on Thursday following disclosure of the filing.
Bloom shareholders initially reacted with concern, given the company’s agreement to provide up to 2.45 gigawatts of solid-oxide fuel cell systems for the facility. However, sentiment reversed quickly after Wall Street analysts offered their perspective.
Morgan Stanley’s David Arcaro informed investors the force majeure filing appears to function as a precautionary legal measure rather than a warning sign. He indicated no anticipated negative impact on Bloom’s operations.
Arcaro maintained his Overweight recommendation on Bloom stock with an unchanged $310 price objective. He emphasized that Project Jupiter revenue isn’t included in Bloom’s fiscal 2026 financial outlook, meaning current year projections remain unaffected.
Root Causes Behind Project Delays
The delays aren’t connected to Bloom’s fuel cell systems. Arcaro identified a 17-mile natural gas pipeline requiring regulatory approval, along with outstanding air quality permits from New Mexico authorities.
Even under the most pessimistic scenario, Arcaro believes Bloom remains protected. Should the New Mexico location be abandoned or indefinitely postponed, contractual safeguards allow Oracle to reassign fuel cell deliveries to alternative data center developments.
Bloom Energy issued its own statement addressing the matter. In a Thursday post on X, the company confirmed 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 typically serve to maintain contractual flexibility between parties. The spokesperson clarified that filing such notices doesn’t automatically indicate delays or modified delivery schedules.
Broader Context for Bloom Energy
Project Jupiter represents a component of the expansive Stargate initiative, a collaborative effort between Oracle and OpenAI. The New Mexico development could attract initial capital deployment of $50 billion, with aggregate expenditures potentially hitting $165 billion across three decades.
Friday’s gains extended a robust performance period for Bloom. The stock is experiencing its strongest monthly showing since April, when it soared 109%. Year-to-date, shares have climbed 232%.
Market activity was robust, with approximately 17.3 million shares tradedārepresenting a 34% increase over typical daily volume.
Analyst sentiment remains cautiously optimistic overall. Mizuho recently upgraded its price objective to $351 from $242, while BTIG and Jefferies have similarly increased their targets in recent weeks.
Stack Infrastructure, the development company referenced in Oracle’s notification, operates under Blue Owl Capital’s ownership. That company’s shares advanced 0.7% on Friday.
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