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Bloom Energy (BE) rose about 11% after Jefferies lifted its target to $264, retracing most of Monday's 9% drop in one of the more volatile AI stocks.
- Bloom Energy shares rose about 11% Tuesday, recovering most of Monday's roughly 9% decline.
- Jefferies raised its target to $264 from $229 and kept its Hold rating.
- Project timing risk at Oracle's Jupiter site remains the main source of volatility.
Lead
Bloom Energy (NYSE: BE) shares jumped about 11% on Tuesday, September 29, 2026, after Jefferies raised its price target on the fuel cell maker to $264 from $229 and reiterated a Hold rating. The move recovered most of Monday's slide of nearly 9%, which took the stock to roughly $263. Shares traded as much as 13% higher during the session. The stock has gained about 257% over 12 months, and its beta of roughly 3.8 signals swings far larger than the broader market's.Why Did Bloom Energy Stock Jump on Tuesday?
Bloom Energy stock jumped because Jefferies said the company's behind-the-meter power thesis remains intact despite friction at some of its largest projects. Behind-the-meter power means electricity generated on a customer's own site rather than drawn from the grid, a model data center operators are adopting as grid connections become scarce.
Jefferies pointed to three supports for near-term growth:
- Brookfield's $25 billion framework agreement.
- American Electric Power's $2.65 billion firm order.
- Bloom's plan to reach 2 gigawatts of annual manufacturing capacity by the end of 2026.
The new target sits only marginally above Monday's trading level, so the note read as validation of the business rather than a call for large further upside. Other brokerages carry higher targets, including $325 and $351.
What Caused Monday's Sell-Off?
Monday's decline of about 9% reflected profit-taking after a steep 2026 rally, compounded by renewed concern over Oracle's Project Jupiter. Oracle issued a force majeure notice on the New Mexico data center campus, a contractual step that protects it if the site misses its 2028 completion target. Oracle and developer Blue Owl said the project remains on schedule and that financial commitments are unchanged.
Bloom has a contract to supply 2.4 gigawatts of fuel cell capacity to the campus, which makes the project central to its order book. The company said Oracle remains committed to that contract. Bloom shares had risen about 8% on September 25 after that reassurance.
Rising Treasury yields added pressure. The 10-year yield climbed above 5.2%, which weighs on growth shares whose value depends on long-dated cash flows. A securities class action over the company's disclosures on Chinese-sourced scandium oxide also reached its lead-plaintiff deadline on Monday.
How Risky Are These AI Stocks Right Now?
AI stocks tied to data center power are trading on project milestones and financing conditions as much as on demand. Bloom shares have made more than 100 daily moves of over 5% in the past year. The stock remains roughly 23% below its June 2026 high of $345.85.
Jefferies said the Jupiter and Vineland projects raise timing risk around air permits, water, gas supply and local approvals, not customer demand or financing. Because revenue is concentrated in several contested projects, the firm expects the shares to stay volatile around event risk.
Outlook
Bloom Energy has recovered most of Monday's loss, but the drivers of the two-day swing are unresolved. Oracle's Jupiter schedule, local approvals, Treasury yields and the pace of manufacturing expansion toward 2 gigawatts will shape the stock's path. Further announcements on the Brookfield and AEP orders would test the durability of the rebound.
Mentioned tickers: BE, ORCL, OWL, AEP, BAM
