Oracle shares soared for the second day in a row. What caused the rally and whether it's too late to buy

Shares of Oracle jumped 8% in trading on Tuesday, April 14, continuing its rapid rise for the second day in a row amid a recovery in the technology sector as a whole. The company expanded its capacity supply deal with energy supplier Bloom Energy, whose shares soared 24%.

The price of Oracle shares rose to $169.4, which is the maximum for about a month. Bloom Energy shares set a new record for the whole time of circulation on the stock exchange - $218.69.

As part of the deal, Oracle plans to purchase Bloom systems with a total capacity of up to 2.8 gigawatts to supply power to data centers powering artificial intelligence amid skyrocketing energy consumption. The companies have already agreed to deliver the first 1.2 gigawatts of power in 2026 and 2027. One gigawatt is enough to provide electricity to about 750,000 households at a time, Bloomberg explained.

The deal follows Oracle's April 9 warrant to buy up to 3.53 million shares of the fuel cell maker's stock at $113.28 per paper - totaling about $400 million, according to documents filed with the Securities Commission. Oracle has already raised more than $100 billion in debt financing to scale its data center infrastructure and develop AI projects, and is a key technology partner in the $500 billion Stargate AI project in the U.S., CNBC writes.

Oracle's shares are rapidly growing for the second day in a row. On Monday, they jumped nearly 13% amid a broad rise in shares of software developers. For Oracle securities, this was the strongest rise in seven months, they became the best for the day in the S&P 500 broad market index.

The iShares Expanded Tech-Software Sector ETF Index rose 5.4% on April 13, its best performance since April 9, 2025, MarketWatch reported, citing Dow Jones Market Data. Meanwhile, the index had fallen 7.2% in the three previous sessions, hitting its lowest level since November 2023, as investors sold off securities over fears of a new AI from Anthropic startup Mythos. The sell-off also added to worries about possible problems with loan repayment in the private credit market, one of the key sources of funding for the sector, CNBC noted.

On Monday, however, investors returned to the sector's securities, particularly stocks in both cloud and software companies like Oracle, D.A. Davidson analyst Jim Luria told MarketWatch. On Tuesday, the iShares Expanded Tech-Software Sector ETF was up another 3% at the moment.

"The expanded [Bloom Energy] agreement with Oracle is a clear signal that demand from AI hyperscalers translates directly into gigawatt capacity," Evercore ISI analyst Nicholas Amiucci said in a Bloomberg statement.

Oracle stock, despite the two-day rally, is still 16% cheaper now than it was at the start of 2026.

On April 13, Stephens Investment Company lowered its target price on shares of Oracle from $254 to $164 and reiterated a hold recommendation (Equal weight rating). Its target implies a 5% increase in the stock relative to the closing price on April 13.

The consensus of analysts on Oracle shares remains predominantly positive: the majority of experts - 35 out of 44 - recommend buying the securities. Eight analysts recommend to hold them, only one recommends to sell the securities.

This article was AI-translated and verified by a human editor