Oct. 1 at 5:35 PM
Fermi, founded just 10 months ago, launched its IPO at
$21 a share, raising
$682.5 million and valuing the company at
$13.8 billion. The stock jumped 17% to
$24.50 as investors chased another AI-related play.
The Texas-based company plans to power massive data centers with natural gas plants, nuclear reactors, and renewables on a 5,236-acre site leased from Texas Tech. If fully built, the project could generate five times the output of the Hoover Dam by 2038.
Despite strong demand, Fermi is still largely a concept, with no revenue and major execution risks. It structured the deal as a REIT, unusual for such a project, and won’t pay dividends anytime soon. Analysts warn the stock could swing widely—from
$7 to
$105—depending on financing and execution.
The project’s backers include former Texas governor Rick Perry. Early advantages include access to pipelines, turbine equipment during a shortage, and a 40-year lease letter of intent with a prospective data center tenant.
$FRMI $EQIX