Bloom Energy’s $1.7 Billion Pact With Nebius Struggles to Offset Regulatory and Short-Seller Concerns

A $1.7 billion financing agreement to deploy Bloom Energy fuel cells at Nebius Group’s AI cloud infrastructure represents one of the largest single contracts in the company’s history — yet the stock continues to trade under the weight of regulatory setbacks, a bearish short-seller report, and broad market jitters around artificial intelligence spending. The deal, backed by Industrial Development Funding and Oaktree Capital, will fund decentralized power solutions directly at the data centers of Nebius, which itself secured a $775 million GPU-backed credit line at SOFR plus 250 basis points maturing in October 2030.

But the regulatory environment is growing more hostile. Oracle’s “Project Jupiter” — a planned 2.45-gigawatt AI campus in New Mexico that would integrate Bloom fuel cells — has been rejected by regulators for the second time. That follows New York State’s decision to impose a one-year moratorium on new data centers, a sign that political pushback against the energy demands of AI infrastructure is no longer confined to isolated local disputes. For Bloom Energy, whose growth thesis hinges on large-scale data-center deployments, these are worrying precedents.

The tension spilled into the market on July 16, when Bloom shares slid 13.64% in a single session. That drop coincided with a broader sell-off in AI-related equities: the Philadelphia Chip Index lost roughly 10% that week, while Nebius shares tumbled 19.1% to $177.71. The day’s move was not tied to a single company-specific catalyst but rather to a wave of unease about capital expenditure levels in the AI sector and the terms of Nebius’ own financing. Adding to the pressure is an unaddressed short-seller report that questions Bloom’s reliance on Chinese-sourced scandium in its cell manufacturing.

Institutional investors have responded in sharply divergent directions. Mediolanum International Funds boosted its Bloom stake by 809% in the first quarter, building a position worth just over $20 million. Jennison Associates went further, raising its holdings more than 200-fold to a value of $364 million. Bank of New York Mellon, by contrast, cut its position by 29.2%, selling more than 568,000 shares.

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

The underlying business, nonetheless, continues to deliver record numbers. First-quarter 2026 revenue hit $751.05 million, a 130.4% surge year over year, prompting management to lift its full-year revenue growth forecast from around 60% to as much as 80%. Analysts currently expect earnings per share of $1.43 for fiscal 2026 and $3.72 for 2027. The consensus rating remains “Moderate Buy” with a price target of $271.04.

Despite that upward trajectory, the stock’s technical picture reflects the recent turmoil. At €183.80, Bloom shares are trading nearly 24% below their 50-day moving average of €241.76. The relative strength index of 37.1 puts the stock near oversold territory, suggesting that much of the selling pressure may have already been absorbed. Still, the position is more than 40% off the 52-week high of €308.50 reached in late June. Year to date, the gain still stands at 144.90%, and over 12 months the stock has climbed 747%.

All eyes now turn to the second-quarter earnings report scheduled for July 28 after the market close. With a record revenue quarter already in the books and a major new contract to point to, Bloom Energy has a strong set of facts to present. The question is whether those facts will be enough to quiet the regulatory and short-seller noise that has battered sentiment in recent weeks.