Bloom Energy Shares Face a Reality Check as AI Infrastructure Costs Soar

A dramatic shift in sentiment is underway for Bloom Energy’s stock, marking a stark reversal from its recent explosive rally. The initial euphoria surrounding the company’s role in powering artificial intelligence infrastructure has given way to investor apprehension, triggered by concerning financial data from a key partner.

A Key Partnership Casts a Shadow

The catalyst for this downturn emerged from the latest quarterly report of software giant Oracle, a strategic partner and significant customer for Bloom’s fuel cell technology. Oracle announced a substantial increase in its full-year capital expenditure plans, raising them by $15 billion to a total of $50 billion.

This aggressive expansion strategy comes with a visible cost: Oracle reported a negative free cash flow of $13 billion on a trailing twelve-month basis. This substantial capital burn rate has alarmed the market. Concerns are mounting that building the “AI factories” powered by Bloom’s technology may prove more expensive and time-consuming than previously anticipated. Investors are now reassessing the timeline for a return on these massive infrastructure investments.

The AI Sector’s Divergent Realities

A clear split is emerging within the AI investment landscape. While chip manufacturers like Broadcom dazzle with 65% revenue growth in AI, signaling robust demand, infrastructure-related stocks are facing severe pressure.

This divergence presents a specific challenge for Bloom Energy:
* Demand for AI services remains undeniably strong, as evidenced by Broadcom’s performance.
* However, the capital costs of delivering those services are skyrocketing, as shown by Oracle’s financials.

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

The market is currently penalizing equities associated with high capital expenditure, directly impacting Bloom as a supplier. The stock is suffering collateral damage from Oracle’s numbers, with the financial sustainability of rapid expansion plans now under sharper scrutiny.

Technical Support Levels Tested

An examination of the share price movement reveals the correction’s severity. Although Bloom Energy shares remain up more than 234% since the start of the year, they have now fallen more than 38% from their 52-week high of approximately 123 euros. The stock currently trades at 76.19 euros, having decisively broken below its 50-day moving average of 95.66 euros.

Recent volatility underscores the prevailing nervousness: the stock shed roughly 12% of its value in the past week alone. Market observers interpret this as a broad adjustment in risk appetite. Following the parabolic upward move earlier in 2025, many participants are using the current uncertainty as an opportunity to secure profits.

Path Forward

In the near term, Bloom Energy faces a tense environment as the market continues to digest the high costs associated with AI infrastructure build-out. The critical factor for the share price trajectory in December will be whether it can establish a base of support at current levels or if the correction deepens further amid the gloomy sentiment pervading the infrastructure sector.