Fermi Stock Continues To Soar After Strong Debut On Nasdaq Yesterday
Synopsis
The Amarillo, Texas-based data center real estate investment trust raised $682.5 million through the IPO, with 32.5 million shares on offer.
Fermi Inc.’s (FRMI) shares soared in Thursday’s pre-market trade after making a strong debut on the Nasdaq on Wednesday.
At the time of writing, Fermi’s shares were up nearly 13% in Thursday’s pre-market session. Retail sentiment on Stocktwits around the company was in the ‘extremely bullish’ territory.
Explaining Fermi’s strong debut on Nasdaq despite not having generated any revenue so far, Matt Kennedy, senior strategist at Renaissance Capital, told Reuters that this is because of the “gold rush” happening in the AI infrastructure space. “It (Fermi's IPO) speaks to the gold rush happening in AI infrastructure right now. It's a cash geyser,” said Kennedy.
The Amarillo, Texas-based data center real estate investment trust (REIT) raised $682.5 million through the IPO, with 32.5 million shares on offer. Co-founded by former U.S. Energy Secretary Rick Perry, Toby Neugebauer, and Griffin Perry in January, Fermi stated in its SEC filing that it intends to have up to 11 gigawatts of power available to cater to data centers by 2038.
“Demand for AI-driven infrastructure — and Fermi's plan to pair it with its own modern power sources — has investors intrigued. The company's political ties are seen as another tailwind,” Troy Hooper, co-head of Equity Capital Markets, Americas, at Mergermarket, told Reuters.
Since its founding in January, the Texas-based company reported a net loss of $6.4 million through June, according to the SEC filing. This includes $3.6 million in share-based compensation expense and $2.1 million in general and administrative expenses. The firm incurred $0.7 million in non-cash interest expense from paid-in-kind convertible notes.
Fermi’s IPO is the latest in a growing line of companies debuting on the stock market. In September, Delaware-based cybersecurity firm Netskope Inc. (NTSK), Klarna Group Plc. (KLAR), and StubHub Holdings Inc. (STUB) made strong debuts, after being delayed due to an increase in market volatility following President Donald Trump’s tariff policies.
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