Shares of Bloom Energy (BE) climbed 8% on Friday, closing near $288.70 and finishing the day as the best-performing stock in the S&P 500. The advance marked a swift turnaround in sentiment, arriving just one day after a force majeure notice issued by Oracle (ORCL) raised concerns about Bloom's role in a major data center project. The two-day swing illustrated how closely the fuel cell maker's shares now track headlines from Oracle's data center buildout, where Bloom is supplying capacity at gigawatt scale.

The notice, which Oracle sent to Stack Infrastructure — the developer behind its Project Jupiter data center campus in New Mexico — is designed to defer potential payment obligations should the site encounter delays extending beyond 2028. Force majeure is a contractual mechanism that allows companies to defer certain obligations when events outside their control threaten a project's timeline. News of the filing surfaced on Thursday and sent Oracle shares down almost 2% in that session. Bloom investors grew nervous as well, given that the company is slated to supply up to 2.45 gigawatts of solid-oxide fuel cells for the project.

The mood shifted quickly, however, once analysts weighed in. In a note to clients, Morgan Stanley analyst David Arcaro said the force majeure notice looks more like a legal safety net than a red flag, adding that he does not expect it to hurt Bloom at all. Arcaro kept his Overweight rating on the stock intact, along with his $310 price target. He also pointed out that Project Jupiter is not baked into Bloom's fiscal 2026 guidance, meaning there would be no hit to this year's numbers either way.

Why the Delays Are Happening

The holdup, Arcaro explained, has nothing to do with Bloom's fuel cell technology itself. Instead, he traced the delays to a 17-mile natural gas pipeline that still requires permits, as well as local air quality approvals in New Mexico. Those permitting steps now stand as the clearest markers to watch for signals on whether Project Jupiter stays on schedule.

Even in a worst-case scenario, though, Arcaro argued that Bloom would come out fine. If the New Mexico site were ultimately scrapped or delayed indefinitely, contractual protections would allow Oracle to redirect those fuel cell shipments to other data center projects instead.

Bloom Energy also addressed the situation directly. In a post on X shared Thursday, the company said Oracle "remains committed to Project Jupiter and its contract with Bloom to deliver 2.4 GW of fuel cell capacity." The company's public comments echoed the reassurance from analysts.

Oracle backed that position in a statement to Barron's. A spokesperson said force majeure notices are common in large-scale developments and are often used simply to preserve contractual rights between partners. The company added the notice does not, by itself, signal a delay or any change to its delivery plans.

The Bigger Picture for Bloom

Project Jupiter is part of the broader Stargate initiative, a joint venture between Oracle and OpenAI. The New Mexico campus alone could see an initial investment of $50 billion, with total spending potentially reaching $165 billion over 30 years. For Bloom, Project Jupiter amounts to a foothold in that buildout — and the reason a routine-looking legal filing from Oracle was enough to rattle the stock.

Friday's move capped a strong stretch for the company. Bloom is on track to post its best month since April, when shares jumped 109%, and the stock is up 232% year to date. Trading volume was heavy as well, with roughly 17.3 million shares changing hands, about 34% above the average session volume.

Wall Street has been broadly split on the stock but leaning positive overall. Mizuho recently raised its price target to $351 from $242, while other firms, including BTIG and Jefferies, have also lifted their targets in recent months.

Stack Infrastructure, the developer named in Oracle's notice, is owned by Blue Owl Capital, whose shares rose 0.7% on Friday.