Oracle and Bloom Energy Corp saw their stock prices surge after announcing an agreement to expand power capacity for AI data centers. The software giant's stock rose for a second consecutive day, while other software stocks also continued their recovery from recent sharp declines. Oracle has accumulated over $100 billion in debt to fund its data center expansion.
Oracle's stock climbed 5% on Tuesday, marking the second straight day of gains for software stocks, as the company expanded its power capacity agreement with Bloom Energy Corp. Bloom Energy Corp's stock skyrocketed 20%. The rally continued the broad recovery in software stocks that began on Monday, when Oracle's shares surged nearly 13%. On Tuesday, ServiceNow, Palantir, and Applovin each rose 3%, while HubSpot and Unity Software gained over 4%. Salesforce and Adobe saw increases of more than 1%. Software stocks have experienced significant declines over recent months due to market concerns that new AI tools could disrupt existing business models. This sell-off also raised worries about increasing default risks in private credit, a major financing source for the industry. On Monday, Oracle expanded its power capacity partnership with Bloom Energy Corp, just days after Oracle secured a warrant to purchase $4 billion worth of stock in the fuel cell power company. Under the agreement, Oracle plans to procure up to 2.8 gigawatts of Bloom Energy Corp's systems to meet soaring power demands from its data centers. The software giant has borrowed over $100 billion to fund data center expansion and large-scale AI infrastructure development, and is also a key technology partner in the major "Project Stargate." Year-to-date, Oracle's stock is down 15%.
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