What Happened?
Shares of electricity generation and hydrogen production company Bloom Energy (NYSE: BE) fell 6.6% in the morning session after investors rotated out of AI-linked high-flyers following underwhelming earnings updates from Oracle and Broadcom as the core thesis shifted from "growth at any cost" to "prove the returns."
Oracle triggered the alarm by missing revenue estimates while simultaneously hiking capital expenditures by $15 billion. This reignited fears that AI infrastructure spending is outpacing actual monetization. Broadcom compounded the anxiety; despite beating earnings, its stock fell as CFO Kirsten Spears cautioned that gross margins may come under pressure as product mix shifts further toward system-level AI sales. This sparked a macro rotation away from AI infrastructure and power plays. High-valuation names like AMD, Vertiv, and Bloom Energy fell as markets looked to sectors that can benefit from the recent Fed rate cut and a resilient economy.
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What Is The Market Telling Us
Bloom Energy’s shares are extremely volatile and have had 79 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped on the news that its partner, software company Oracle, reported disappointing quarterly results that sparked fears of a slowdown in the artificial intelligence sector. Oracle's stock fell sharply after its revenues did not grow as fast as analysts had hoped, despite major efforts in AI. This negative sentiment dragged down Bloom Energy's stock. The two companies are linked because Oracle had previously announced it would rely on Bloom's fuel cells to power its data centers, a deal that had initially boosted investor confidence in Bloom Energy.
Bloom Energy is up 325% since the beginning of the year, but at $99.24 per share, it is still trading 30.3% below its 52-week high of $142.37 from November 2025. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $4,077.
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