Why Bloom Energy (BE) Shares Are Trading Lower Today

What Happened?

Shares of computer processor maker AMD fell 4.3% in the afternoon session after investors rotated out of AI-linked high-flyers following underwhelming earnings updates from Oracle and Broadcom as the core thesis shifted from "growth at any cost" to "prove the returns."

Oracle triggered the alarm by missing revenue estimates while simultaneously hiking capital expenditures by $15 billion. This reignited fears that AI infrastructure spending is outpacing actual monetization. Broadcom compounded the anxiety; despite beating earnings, its stock fell as CFO Kirsten Spears cautioned that gross margins may come under pressure as product mix shifts further toward system-level AI sales.This sparked a macro rotation away from AI infrastructure and power plays. High-valuation names like AMD, Vertiv, and Bloom Energy fell as markets looked to sectors that can benefit from the recent Fed rate cut and a resilient economy.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy AMD? Access our full analysis report here.

What Is The Market Telling Us

AMD’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 3.8% on the news that the company was impacted by disappointing earnings from cloud company Oracle and a recent U.S. policy shift benefiting its competitor, Nvidia. 

Weak revenue and guidance from Oracle, a major AMD supporter, sparked concerns about a slowdown in enterprise spending on artificial intelligence. The results signaled that the era of spending on AI at any cost might be pausing, prompting fears that companies with tightening budgets would stick with the market standard, Nvidia, instead of experimenting with alternatives like AMD. Adding to the pressure, the White House recently authorized Nvidia to ship certain advanced chips to China. This decision effectively removed a large market opportunity that AMD had expected to fill with its own chips designed to comply with previous restrictions.

AMD is up 77.1% since the beginning of the year, but at $213.67 per share, it is still trading 19.2% below its 52-week high of $264.33 from October 2025. Investors who bought $1,000 worth of AMD’s shares 5 years ago would now be looking at an investment worth $2,254.

What Happened?

Shares of enterprise software giant Oracle fell 5.1% in the afternoon session after the company's stock continued to fall from the previous session as investors digested earnings results that raised concerns about heavy spending on Artificial Intelligence (AI) infrastructure. 

The drop extended a significant decline from the prior trading day when the stock plunged after the company reported mixed financial results. While Oracle beat earnings per share estimates, its cloud revenue and a key metric for future growth, remaining performance obligation (RPO), fell short of Wall Street's expectations. Compounding investor worries, the company announced a much more aggressive AI spending plan, raising its capital spending outlook for the fiscal year to about $50 billion. Investors seemed skeptical that the heavy spending on building AI data centers, funded partially by the company's large debt load, would quickly boost revenue and profits.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Oracle? Access our full analysis report here.

What Is The Market Telling Us

Oracle’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 13.9% on the news that the company reported mixed financial results, ultimately signaling a weaker quarter that failed to meet lofty market expectations, and revived worries among investors about high valuations in the AI space. 

As a prominent bellwether of the AI trend, the company fell marginally short of Wall Street estimates for both revenue and its remaining performance obligation (RPO), a key indicator of future growth. Compounding this, adjusted operating income missed, and the company continued its trend of cash burn. 

Management attributed future margin progression to the efficient scaling and optimal mix of high-value workloads. Despite the current financial dip, they remained bullish, expecting the ongoing demand for sophisticated AI infrastructure and data center capacity to drive cloud revenue higher, with a strategic focus on scalable, high-margin deployments.This growth, however, comes with substantial capital requirements. The company acknowledged that the capital intensity of these projects will necessitate disciplined investment and innovative funding models. This challenge was further amplified when the company raised its capital spending outlook for fiscal 2026 by an additional $15 billion, to a total of $50 billion. 

Overall, the quarter revealed the critical market tension between strong AI demand and the massive, cash-intensive capital investments.

Oracle is up 14.5% since the beginning of the year, but at $190.08 per share, it is still trading 42.1% below its 52-week high of $328.33 from September 2025. Investors who bought $1,000 worth of Oracle’s shares 5 years ago would now be looking at an investment worth $3,128.