Oracle jumps for a second day, Bloom Energy soars 22% on AI data center power deal
Shares of Oracle and Bloom Energy popped after the companies reached a deal for more AI data center capacity.
The software giant gained for a second day, as other names in the sector also briefly bounced, attempting to recover from a recent rout. Furthermore, experts in investors note the continued relevance.
Oracle has already raised over $100 billion in debt to support its data center build.
Oracle’s stock jumped more than 4% on Tuesday as software shares rebounded for a second session and the business broadened its capacity deal with Bloom Energy. This also touches on aspects of portfolio.
The rally built on Monday’s broad bounce in software stocks, which boosted Oracle nearly 13%. HubSpot, Salesforce, and ServiceNow gave up earlier gains.
Over the last few months, software stocks have tumbled as concerns mount that updated artificial intelligence tools will upend their business models. The sell-off has also sparked worries about rising default risk in private credit, a major lender to the sector.
Oracle expanded its capacity partnership with Bloom Energy on Monday, days after receiving a warrant to purchase $400 million of the fuel cell power company’s stock.
As part of the deal, Oracle expects to procure up to 2.8 gigawatts of Bloom’s systems as it races to feed skyrocketing data center energy demand.
The software giant has already raised over $100 billion in debt to support data center scaling, a massive AI buildout, and is a key digital systems partner in the Stargate project.
â CNBC’s Jordan Novet contributed to this story.
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This article has been generated and curated using advanced AI technology. While we strive for absolute accuracy, some details may be summarized or translated by autonomous systems. Please cross-reference critical financial data with official sources.
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