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Oracle (ORCL) shares inched higher on Tuesday after the cloud giant expanded its agreement with Bloom Energy (BE) to deploy 2.8 gigawatts of its fuel cell capacity to power its AI data centers.

This marks a significant jump from an initial 1.2 GW deal it had signed with BE in mid-2025, reinforcing that the AI buildout is generating unprecedented levels of power demand.

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Despite recent gains, Oracle stock remains a laggard in 2026, still down about 20% versus its year-to-date high.

Oracle’s expanded agreement with Bloom Energy is majorly bullish for its stock price as it solves the primary bottleneck in the global race to build AI infrastructure – power availability.

By contracting for up to 2.8 GW of on-site fuel cell capacity, ORCL is effectively future-proofing its data center roadmap.

This independent power generation allows for faster deployment of Nvidia (NVDA)-powered clusters, with initial systems coming online in nearly half the industry-standard time.

Plus, the deal includes warrants for BE shares that are already deep “in the money,” representing hundreds of millions for Oracle in paper gains.

This unique financial tailwind that helps offset the heavy capex required for its infrastructure blitz makes ORCL shares even more attractive as a long-term holding.

Oracle shares remain worth owning also for the firm’s high-margin OCI growth and its strategic partnerships with both Microsoft (MSFT) and Google (GOOG) (GOOGL).

The legacy tech company’s remaining performance obligations continue to hit new record levels, signaling relentless demand for its AI infrastructure.

With ORCL growing its footprint into emerging markets like Morocco and its heavy involvement in the $500 billion “Stargate” project, the stock looks rather compelling at an attractive valuation of about 23x forward earnings.

Note that Oracle also currently pays a dividend yield of 1.23%, which makes it particularly exciting for income-focused investors.

Wall Street also remains bullish on Oracle as its transition of a massive database install base to the cloud provided a recurring revenue floor that not a lot of tech firms can replicate.

The consensus rating on ORCL stock remains at “Strong Buy” with the mean price target of about $253 indicating potential upside of roughly 55% from here.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com