Core Insights - Fermi Inc. (NASDAQ:FRMI) has experienced significant declines, dropping to an all-time low of $21.26 amid investor concerns regarding energy stocks linked to the AI bubble [1][3] - Analysts express worries that the AI bubble may adversely affect energy stocks, which have seen record highs year-to-date [2] - Fermi Inc. is perceived as overpriced, with a market capitalization of $12 billion against only $2 billion in paid-in capital [3] Company Performance - Fermi Inc. fell by 14.49% to close at $21.71 after reaching a 52-week low during intra-day trading [1] - The company raised $682 million during its IPO by issuing 32.5 million shares at $21 each [4] Market Context - The energy sector is facing skepticism as analysts highlight that unlike profitable tech companies, energy stocks may not sustain their value if the AI boom diminishes [2][3] - Fermi Inc. was newly listed on October 1, aiming to capitalize on the AI trend [3]

Group 1 - Fermi Inc. (NASDAQ:FRMI) experienced a significant decline in share prices, dropping by 5.96% to close at $25.39 due to investor concerns regarding energy stocks linked to the AI bubble [1][3] - The energy sector is facing challenges as a group of non-revenue-generating energy companies has amassed over $45 billion in hopes of future contracts with tech companies [2] - Fermi Inc. is a newly listed energy company that raised $682 million during its IPO by offering 32.5 million shares at $21 each, capitalizing on the AI frenzy [3] Group 2 - There is a belief that certain AI stocks may offer higher returns with limited downside risk compared to energy stocks like Fermi Inc. [4]

Core Viewpoint - The article highlights the rising valuations of unprofitable energy companies, suggesting that the real over-speculation may be occurring in the energy sector rather than in technology stocks [3]. Group 1: Unprofitable Energy Companies - A group of unprofitable energy companies has seen their total valuation exceed $45 billion, based solely on the expectation that technology companies will eventually purchase their yet-to-be-built energy facilities [4]. - Oklo, a nuclear energy startup supported by OpenAI CEO Sam Altman, has seen its stock price increase approximately sevenfold this year, with a current market capitalization of around $26 billion [4]. - Fermi, another unprofitable company, had an initial valuation of about $19 billion upon its IPO earlier this month, making it one of the largest unprofitable companies by market cap at IPO [5]. Group 2: Company Details and Market Comparisons - Fermi plans to build energy facilities with a total installed capacity of 11 GW, comparable to the total capacity of Talen Energy, which already has operational assets [6]. - Despite its high valuation, Fermi has only secured natural gas equipment that meets 5% of its total capacity goal and has not signed binding contracts with any customers [6]. - Nano Nuclear Energy, a smaller company, has seen its stock price double this year, with a current valuation exceeding $2 billion [7]. Group 3: Market Trends and Predictions - Companies like NuScale Power and Plug Power, which have generated some revenue, are still not expected to achieve profitability for several years, with predictions extending to 2030 [10][11]. - The surge in interest for speculative energy companies may be driven by the high valuations of profitable energy firms, with Bloom Energy's stock price increasing over 400% this year [11]. - If the AI bubble bursts, these unprofitable energy companies are likely to be the most affected, facing significant declines and lacking buffer space [12].

Company Overview - Fermi Inc. (NASDAQ:FRMI) is a newly listed company that raised $682 million from its initial public offering (IPO), covering 32.5 million shares at a price of $21 each [2] - The company is focused on developing next-generation electric grids that provide highly redundant power at a gigawatt scale, essential for advancing artificial intelligence technologies [5] Stock Performance - Fermi's stock experienced a significant rebound, jumping 6.91% to close at $28.17 after a three-day losing streak, driven by investor bargain-hunting due to its perceived cheap valuation [1] - From its IPO price of $21 to the latest closing price of $28.17, the stock has appreciated by 34% [3] Financial Developments - Fermi granted underwriters a 30-day option to purchase an additional 4.87 million shares at the IPO price, which could potentially raise an additional $102 million [3] - The company has entered into an employment agreement with Toby Neugebauer as CEO, with an annual base salary of $500,000 for a three-year term [4]

Group 1 - Fermi Inc. is a new IPO positioned within the AI sector, planning to develop a mega-campus for energy infrastructure and data centers to support AI development [1] - The company has secured a 99-year ground lease on 5,236 acres, which is strategically located for connectivity and access to power [4] - Fermi aims to generate 11 GW of onsite power from reliable sources like nuclear and natural gas, with plans for large-scale data centers [7] Group 2 - The business model involves leasing data centers along with power capacity, which qualifies for REIT tax laws [8][9] - Fermi's market analysis suggests that a tenant lease could generate $1.5 billion in revenue per GW of capacity, leading to an estimated $1 billion in NOI after operating expenses [11] - The company has a letter of intent with an investment-grade tenant for a 20-year lease, indicating strong demand for its services [9] Group 3 - Fermi's co-founder, Rick Perry, may help navigate regulatory challenges due to his experience as a former U.S. Secretary of Energy [16] - The company has contracted for approximately 720 MW of generating capacity and has a preliminary agreement for an additional 200 MW from Xcel Energy [17] - Fermi's business plan is considered reasonable given the demand for energy infrastructure, although execution risks remain [18] Group 4 - The IPO raised about $2 billion, but the market cap is currently around $18 billion, raising concerns about overvaluation [19][26] - The majority of shares were issued at low prices, leading to significant dilution for public investors who paid higher prices during the IPO [33][34] - The limited float of shares (only 32.5 million out of 592 million) contributes to the inflated market valuation, with expectations of a price drop as lock-up periods expire [35][38]

Company Overview - Fermi Inc. (NASDAQ:FRMI) recently debuted on the stock market, offering 32.5 million shares at an IPO price of $21, raising up to $682 million [2] - The company is focused on developing next-generation electric grids that provide highly redundant power at a gigawatt scale, essential for advancing artificial intelligence technologies [4] Stock Performance - Fermi's stock has experienced a decline, losing 7.87% on Monday, marking the third consecutive day of losses, as investors took profits despite a 25% upside potential [1] - The stock closed at $26.35 per share following the recent downturn [1] Management Changes - Fermi Inc. has entered into a three-year employment agreement with Toby Neugebauer as the CEO, which includes automatic one-year renewals unless terminated earlier [3] - Neugebauer's annual base salary is set at $500,000 [4]

The staff of the power supply company conducts a routine inspection of the newly built pole section transmission line of the 500 kV Sanqiu Chateng Line in Nanjing, Jiangsu Province, China, on September 12, 2025. (Photo by Costfoto/NurPhoto via Getty Images)NurPhoto via Getty ImagesFermi Inc., (NASDAQ: FRMI), a Texas-based AI infrastructure startup co-founded by former U.S. Energy Secretary Rick Perry, recently had a successful IPO. Just a few months after its founding in January, the company went public las ...

We recently published 12 Stocks Jim Cramer Mentioned In An Episode Where He Briefly Commented On Data Centers. Fermi Inc. Common Stock (NASDAQ:FRMI) is one of the stocks Jim Cramer recently discussed. Fermi Inc. Common Stock (NASDAQ:FRMI)’s shares were listed for trading the day this episode was aired. It is a company seeking to target the growing needs of AI infrastructure by building a data center complex powered by nuclear, natural gas, and solar power. Through these power sources, Fermi Inc. Common St ...

Company Overview - Fermi Inc. (NASDAQ:FRMI) is a newly established company focused on developing large-scale next-generation electric grids aimed at powering advanced artificial intelligence [2] - The company plans to integrate various energy sources, including nuclear, natural gas, solar, battery storage, and utility power, to provide highly redundant gigawatt-scale energy [2] Financial Status - Currently, Fermi Inc. has no revenue and has incurred over $6 million in expenses during its first nine months of operation [1] - The company is viewed more as a business plan than an actual business at this stage, indicating a long timeline before potential profitability [1] Investment Perspective - While there is potential for Fermi Inc. as an investment, there are other AI stocks that may offer greater upside potential and carry less downside risk [3] - The company is still in the early stages of development, which may affect its attractiveness to investors compared to more established AI stocks [3]

Fermi (FRMI) shares remain in the spotlight on Thursday after a blockbuster initial public offering (IPO) that valued the company’s shares at $21 each. The real estate investment trust (REIT) headquartered in Amarillo, Texas is committed to powering artificial intelligence (AI) data centers with natural gas (NGX25) and nuclear reactors. More News from Barchart FRMI shares printed a high above $36 on Thursday, indicating a 70% premium on their IPO price. www.barchart.com The Case for Investing in Fermi ...