AI's power and pipe dream: how infrastructure bets are redrawing stock valuations

Bloom Energy (BE) surged 24% on Tuesday as investors priced in long-term revenue from an expanded partnership with Oracle to deploy 1.2 gigawatts of fuel-cell capacity—scalable to 2.8 gigawatts—to power AI and cloud infrastructure projects. The deal triggers revenue recognition starting in 2026 and 2027 as deployments from the backlog come online. JPMorgan raised its price target to $231 from $166, calling the agreement a 'stamp of approval' for BE’s growth trajectory. Jefferies upgraded the stock to 'Hold' from 'Underperform' and lifted its target to $187 from $97, citing those future cash flows. Clear Street, Roth Capital, and other firms followed with higher targets, citing improved revenue visibility. Over the past year, BE shares have surged 1,124%, far outpacing the Energy Select Sector SPDR Fund (XLE), which fell 2% Tuesday.