Bloom Energy Shares Face Pressure as AI Infrastructure Narrative Shifts

A sharp sell-off has hit Bloom Energy's stock, driven by a dual challenge to its core growth story. Recent developments involving a key customer and emerging competitive threats have prompted investors to reassess the fuel cell company's prospects within the artificial intelligence infrastructure boom.

Adding pressure to the bearish sentiment are disappointing quarterly results from Oracle, a significant client and partner for Bloom Energy. Oracle reported revenues that fell short of analyst expectations and has shown a negative free cash flow over the past four quarters. This financial picture raises concerns that Oracle may become more cautious in managing its investments in infrastructure projects.

For Bloom, these projects—specifically the construction of AI-capable data centers—represent a crucial market. The fear among investors is that if a major industry player like Oracle slows its expansion pace, it could directly decelerate growth in Bloom's core business. The stock's decline is therefore a reaction not only to new competition but also to the weakened financial position of a pivotal customer.

SpaceX Ambitions Introduce a New Competitive Dynamic

The primary catalyst for the recent downturn appears to be a report concerning SpaceX. The space exploration company, according to the report, is planning an initial public offering for 2026 to raise capital for developing "data centers in space."

This ambition directly conflicts with the established investment thesis for Bloom Energy. The company's shares had more than tripled at points in 2025, fueled by investor belief that terrestrial AI data centers would require massive amounts of additional power—a need Bloom's fuel cells were positioned to meet. The prospect of solar-powered orbital data centers at least partially undermines this demand scenario. The market is now pricing in the risk that some of the expected growth for conventional, ground-based infrastructure could vanish or be significantly delayed.

A Sharp Weekly Correction Amid Annual Gains

The combination of the SpaceX narrative and Oracle's weakness triggered a substantial correction. On Friday alone, the stock plummeted approximately 12.7%, closing at 80.91 euros. For the week, the loss accumulated to roughly one-fifth of its value. Despite this recent pullback, the shares remain significantly higher since the start of the year.

Should investors sell immediately? Or is it worth buying Bloom Energy?

This decline follows a steep, rapid ascent that had left the stock vulnerable to profit-taking. Market technicians note a clear shift in momentum: the price has now fallen decisively below its 50-day moving average, though it remains well above the 200-day line—a pattern typical after an exaggerated rally.

Key technical indicators highlight the current volatility:
* A weekly loss in the high double-digit percentage range
* The current price sits approximately one-third below its 52-week high
* Volatility remains elevated, with the Relative Strength Index (RSI) retreating from previously overheated levels

The extremely high RSI reading prior to the sell-off signaled the stock was deeply overbought and ripe for a consolidation phase.

Broader Market Retreat from AI High-Flyers

This situation unfolds against a wider market trend where investors are scaling back exposure to high-flying AI beneficiaries. A growing concern is that investments in underlying infrastructure and capacity are expanding faster than the actual monetization of AI applications.

In this environment, growth-oriented yet volatile stocks like Bloom Energy face particular pressure. The one-two punch of SpaceX's plans and Oracle's results acted as a trigger for a correction that gained momentum due to the stock's previously extreme performance.

The coming weeks will likely hinge on whether the outlook for major customers stabilizes—specifically regarding their investment plans for AI data centers—and how credible alternative infrastructure models like orbital computing become. Until greater clarity emerges, Bloom Energy's valuation is expected to remain tightly coupled to any new developments in the AI infrastructure landscape.