Renewable energy and power supplier Bloom Energy has roared higher since it announced in late July it was partnering with Oracle to supply fuel cell technology for the hyperscaler's AI data centers. Now, the stock just received a price target increase that projects a further 27% upside compared to Monday's stock price.
Morgan Stanley analyst David Arcaro on Tuesday raised his Bloom Energy stock price target to 85 from the previous 44, citing "more credible potential for significant data center-driven order flow" as Bloom is "ramping a new relationship" with Oracle just as the top AI hyperscaler "is experiencing a massive inflection in demand."
"BE is extremely well positioned: One of the only players able to scale manufacturing and deploy rapidly into a tightening market," Arcaro wrote Tuesday.
Bloom Energy stock surged 9.4% to 73.29 during Tuesday's stock market and now has a 38.4% gain in September. The Oracle partner broke out above a traditional consolidation buy point of 29.82 on July 24, according to MarketSurge charts.
Prior to Tuesday's stock market, Bloom Energy proceeded to rally 125% above that buy point. The strong, eight-week move positioned for a possible a high tight flag pattern. A rare chart setup, it screams a stock is "up-and-coming" based on when a stock goes up 100% or more in six to eight weeks after a breakout.
However, Tuesday's market stock action showed shares trading more than 9% higher, a move that negates the possibility of a high-tight flag.
Since ending April at 18.32, Bloom Energy stock has soared 300%.
Oracle And Bloom Energy
Meanwhile, Oracle stock edged up 1.5% to 306.58 in Tuesday's stock market, after gaining 3.4% on Monday.
Oracle stock on Sept. 10 rallied nearly 36%, its best trading day this century, after reporting that the company's remaining performance obligations surged 359% to $455 billion during its August-ended quarter.
Oracle Stock Soars On 'Staggering' AI Cloud Demand
RPO, measuring contracted revenue that has not yet been recognized, is a closely watched metric for Oracle's backlog as it scales up cloud data centers to serve AI demand. That number appeared to surprise even bullish Oracle stock analysts. The results earlier this month boosted the view that Oracle will be an AI winner.
"Oracle's massive upside bookings surprise opens up new visions for Bloom's potential scale," Arcaro added Tuesday. "As a result we think Bloom has now become much more clearly, favorably positioned for success in powering AI data centers."
Bloom on July 24 announced it would be shipping product to the first Oracle data center in 90 days and there are "many" additional Oracle data centers that the company will be delivering to in the future.
Arcaro noted Tuesday that Bloom Energy expects new orders "soon from AI ecosystem hardware players" and that it is doubling production capacity, with the company spending $100 million on getting manufacturing capacity to 2 gigawatts by the end of 2026.
Bloom Energy stock has a perfect 99 Composite Rating. The Oracle partner also has a robust 99 Relative Strength Rating and an 80 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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