TLDR
- Bloom Energy stock rose 8% Friday to close near $288.70, making it the top performer in the S&P 500.
- The jump came after Morgan Stanley reassured investors that Oracle’s force majeure notice won’t affect Bloom Energy.
- Oracle sent the notice to Stack Infrastructure to protect itself against possible delays on its Project Jupiter data center.
- Morgan Stanley kept its Overweight rating and $310 price target, noting the project isn’t part of Bloom’s 2026 guidance.
- Delays are tied to pipeline and air quality permits, not Bloom’s fuel cell technology.
Bloom Energy (BE) stock climbed 8% on Friday, closing around $288.70. That made it the best-performing stock in the S&P 500 for the day.
The rally followed a wave of concern from a day earlier. Oracle (ORCL) had sent a force majeure notice to Stack Infrastructure, the developer behind its Project Jupiter data center campus in New Mexico.
The notice aims to defer potential payment obligations if the site faces delays past 2028. News of the filing sent Oracle stock down almost 2% on Thursday.
Bloom investors got nervous too, since the company is set to supply up to 2.45 gigawatts of solid-oxide fuel cells for the project. But the mood shifted fast once analysts weighed in.
Morgan Stanley analyst David Arcaro told clients the force majeure notice looks more like a legal safety net than a red flag. He said he doesn’t expect it to hurt Bloom at all.
Arcaro kept his Overweight rating on Bloom and a $310 price target intact. He also pointed out that Project Jupiter isn’t baked into Bloom’s fiscal 2026 guidance, so there’s no hit to this year’s numbers either way.
Why the Delays Are Happening
The holdup has nothing to do with Bloom’s fuel cells themselves. Arcaro traced it back to a 17-mile natural gas pipeline that still needs permits, plus local air quality approvals in New Mexico.
Even in a worst case scenario, Arcaro argued Bloom comes out fine. If the New Mexico site gets scrapped or delayed indefinitely, contractual protections mean Oracle can simply redirect those fuel cell shipments to other data center projects instead.
Bloom Energy addressed the situation directly too. In a post on X Thursday, the company said Oracle “remains committed to Project Jupiter and its contract with Bloom to deliver 2.4 GW of fuel cell capacity.”
Oracle backed that up in a statement to Barron’s. A spokesperson said force majeure notices are common in large scale developments and are often used just to preserve contractual rights between partners. The company added that the notice doesn’t by itself signal a delay or change delivery plans.
The Bigger Picture for Bloom
Project Jupiter is part of the larger Stargate initiative, a joint venture between Oracle and OpenAI. The New Mexico campus alone could see an initial investment of $50 billion, with total spending potentially reaching $165 billion over 30 years.
Friday’s move capped a strong stretch for Bloom. The stock is on track for its best month since April, when it jumped 109%. Shares are up 232% year to date.
Trading volume was heavy too, with roughly 17.3 million shares changing hands, a 34% jump above the average session volume.
Wall Street has been broadly split but leaning positive on the name. Mizuho recently raised its price target to $351 from $242, while other firms like BTIG and Jefferies have also lifted targets in recent months.
Stack Infrastructure, the developer named in Oracle’s notice, is owned by Blue Owl Capital. Shares of that company rose 0.7% on Friday.
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