Oracle jumps for a second day, Bloom Energy soars 20% on AI data center power deal

Oracle's shares experienced a 5% increase on Tuesday, marking a second consecutive day of gains for the software giant. This rise in stock price comes in the wake of a broader recovery in the software sector, which saw Oracle's shares climb nearly 13% on Monday alone. Meanwhile, Bloom Energy's stock skyrocketed by 20% following the announcement of an expanded capacity agreement with Oracle. This rally in shares has been echoed by other notable companies in the software industry. ServiceNow, Palantir, and Applovin all reported gains of 3%, while HubSpot and Unity Software surged by more than 4%. Salesforce and Adobe also saw modest increases of over 1%. However, the software sector has faced challenges in recent months, with concerns about how emerging artificial intelligence technologies could disrupt traditional business models. This uncertainty has fueled worries of heightened default risks in private credit markets, which play a crucial role in financing for the industry. In a significant move, Oracle has broadened its partnership with Bloom Energy just days after securing a warrant to acquire $400 million worth of shares in the fuel cell power company. Under the terms of this new agreement, Oracle anticipates procuring up to 2.8 gigawatts of Bloom's energy systems to meet the surging demand for data center power. To support its scaling ambitions in this area—particularly for AI infrastructure—Oracle has raised over $100 billion in debt. The company is also a critical technology partner in the ambitious Stargate project aimed at revolutionizing data center capabilities. Despite these recent developments, Oracle's stock has still seen a decline of 15% this year.