Why it’s time to sell Bloom Energy’s stock after its AI-fueled rally

Key Takeaways:

• A Jefferies analyst downgraded Bloom Energy’s stock to underperform.
• The rally was sparked by a power-generation deal with Oracle in July.
• An AI angle contributed to heightened investor enthusiasm.
• The analyst warned of “over-exuberance” affecting valuation.
• The story originally appeared in Marketwatch on September 24, 2025.

Jefferies Issues Downgrade

Bloom Energy became a market favorite earlier this year when investors perceived potential for AI-driven innovation in its operations. In a recent report, however, a Jefferies analyst downgraded the company’s stock to underperform. This move comes on the heels of a significant run-up in share price that the analyst believes may have surpassed realistic valuations.

How Oracle Drove the Surge

In July, Bloom Energy announced a power-generation deal with Oracle—a development that many investors saw as a powerful signal for growth. The agreement appeared to dovetail with mounting AI excitement, fueling a wave of buying that lifted Bloom Energy’s profile and share price.

Over-Exuberance in Focus

Caution set in as the Jefferies report warned of what it called “over-exuberance” among investors. By attributing much of Bloom Energy’s rise to a combination of AI-driven hype and the Oracle deal buzz, the analyst contends that the market has layered on unrealistic expectations about future performance.

Looking Ahead

While details of the Oracle partnership remain limited, the analyst’s downgrade underscores the importance of carefully assessing fundamentals before chasing headlines. For those tracking Bloom Energy, the key question—according to this perspective—remains whether recent gains are sustainable in light of current market conditions.