Fermi Inc., a start-up focused on building large data centers for artificial intelligence, saw its stock price soar following its initial public offerings on both the Nasdaq in New York and the London Stock Exchange. The company, which was founded in January this year and has yet to generate any revenue or build operational assets, achieved a valuation of up to $16 billion after its successful IPOs.
Fermi plans to develop a massive AI-focused data center campus covering 5,000 acres in the Texas Panhandle. The project aims to reach 11 gigawatts (GW) of capacity by 2038, though only 10% of that is expected to be operational by 2026. The development will require an estimated $70–$90 billion in investment and is set to include four nuclear reactors as part of its infrastructure.
On its first day of trading, Fermi shares jumped 55%, followed by another surge of 15% in premarket trading the next day. The company raised approximately $636 million through the IPO. Fermi’s current business model and stock price reflect strong investor interest in artificial intelligence infrastructure, but analysts note the investment is highly speculative due to the company’s lack of revenue, operational history, and the significant risks involved in building such a large-scale project.
What does Fermi Inc. do?
Fermi plans to build very large data centers in Texas to support artificial intelligence operations.
Why is Fermi's stock price so high if the company has no revenue?
Investors are excited about the potential growth of AI and data center businesses, so they are betting on Fermi’s future plans even though the company is not yet making money.
What are the risks of investing in Fermi?
Fermi has not yet built any data centers or generated revenue, and building such a large project will require a lot of money and time. There is no guarantee the company will be able to complete the project on schedule or make a profit.
How much money did Fermi raise in its IPO?
Fermi raised about $636 million from its initial public offering.
Sources
Fermi: The AI Craze In Full Swing
Seeking Alpha
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Fermi Inc., a future datacenter AI enablement REIT, debuted in its IPO with a $16 billion valuation despite lacking revenue and operational history. FRMI's ambitious plan targets 11GW capacity by 2038, anchored by a 5,000-acre Texas campus, but only 10% is expected online by 2026. The company is val...
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Fermi surged 40% post-IPO, reflecting AI and data center enthusiasm, but remains a speculative, pre-revenue company with no tangible assets. FRMI's ambitious plan involves building a massive AI data center hub in Texas, including four nuclear reactors, requiring $70–$90 billion in capital. The inves...
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Proactive Investors
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