Should You Buy FRMI Stock After the Fermi IPO?

Core Viewpoint - Fermi (FRMI) has gained significant attention following a successful IPO, with shares initially priced at $21 and later reaching a high of $36, reflecting a 70% premium [1][2]. Company Overview - Fermi is a real estate investment trust (REIT) based in Amarillo, Texas, focused on powering AI data centers using a combination of natural gas, solar, and nuclear energy [1][3]. - The company has secured a site of over 5,200 acres in the Texas Panhandle and has access to major pipelines and turbine equipment [4]. Investment Thesis - Fermi stock is characterized as a high-risk, high-reward investment, appealing to those betting on the long-term demand for AI infrastructure and electricity [3]. - The REIT structure provides tax advantages, and the company has signed a 40-year letter of intent with a major technology firm as its first customer [4][5]. Leadership and Strategy - The leadership team includes notable figures such as Rick Perry, former U.S. energy secretary, and Toby Neugebauer, an experienced private equity executive [5]. - Fermi aims to target its first nuclear reactor by 2031, highlighting its ambitious growth strategy [5]. Market Position - Currently, Wall Street has not initiated coverage on Fermi, leaving investors to independently assess the company's fundamentals and financial outlook [7][8]. - If Fermi successfully executes its plans, it could become a key player in AI infrastructure, making its shares a speculative yet potentially transformative investment [6].