The rally on Tuesday followed Fervo’s 396-megawatt power purchase agreement with Google, its largest contract to date.

  • RBC Capital analyst Christopher Dendrinos said the stock should respond well to the Google agreement.
  • Dendrinos noted that the 396-megawatt contract builds on Fervo’s earlier 115-megawatt deal with Google and NV Energy.
  • RBC said Fervo now has contracted demand and development visibility for about 1.1 gigawatts through 2030, with room to move faster.

Shares of Fervo Energy (FRVO) closed 28% higher on Tuesday after announcing a new power deal with Google, which RBC Capital said was expected but arrived sooner than it previously thought. 

The rally on Tuesday followed Fervo’s 396-megawatt power purchase agreement with Google, its largest contract to date. The deal will supply around-the-clock clean power from Fervo’s Cape Station project in Utah, with first deliveries targeted for 2028.

FRVO stock clocked its best day on Tuesday since late July. 

What RBC Said

RBC Capital analyst Christopher Dendrinos said the stock should respond well to the Google agreement. Google was widely seen as the most likely buyer because of an existing framework to work with Fervo on large amounts of power, the firm noted, adding that it had expected the deal. 

Dendrinos noted that the 396-megawatt contract builds on Fervo’s earlier 115-megawatt deal with Google and NV Energy. Together, those agreements lift Fervo’s total contracted power sales to 1,064 megawatts. RBC said Fervo now has contracted demand and development visibility for about 1.1 gigawatts through 2030, with room to move faster. The firm maintained an Outperform rating and a $46 price target, implying about 200% upside from Monday’s close. 

What The Deal Covers

Fervo said Google will buy carbon-free electricity meant to support a possible data center in Utah. Google also has an option to add about 600 megawatts, which could bring the total close to 1 gigawatt by June 2030. Fervo called it the world’s largest enhanced geothermal power purchase agreement so far.

The two companies have worked together for years. Their first project, a small Nevada plant that came online in 2023, already sends power to the grid that serves Google data centers there. A larger Nevada contract followed in 2024.

Why Investors Care

Fervo builds next-generation geothermal plants that can run day and night, a selling point for data centers that need steady power. The company went public in May 2026 and has been developing Cape Station as its flagship Utah site. First power from the early phase is expected later this year, with about 100 megawatts online by early 2027. The Google contract is meant to help fund the next stage of that build-out. Fervo is still in a heavy-spending phase and has posted losses as it builds plants. 

How Did FRVO Retail Traders React?

On Stocktwits, retail sentiment around FRVO stock remained in ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘extremely high’ levels. 

A Stocktwits user voiced optimism about the deal. 

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Another voiced optimism for the stock rallying higher and recommended against selling at current levels. 

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FRVO stock has fallen 46% since going public.

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