TLDR
- Fermi stock closed at $32.53 on Wednesday, up 54% from its IPO price of $21 per share
- The company raised $682.5 million by selling 32.5 million shares in its Nasdaq listing
- Fermi achieved a $12.5 billion valuation just nine months after founding in January 2025
- The Texas-based energy REIT plans to build the world’s largest data center powered by nuclear, gas and solar
- Stock rose another 11% to $36.14 in premarket trading Thursday, showing continued investor demand
Fermi stock opened its first day of trading at $25 and closed at $32.53 on Wednesday. The Amarillo, Texas-based company priced its IPO at $21 per share, within the marketed range of $18 to $22.
The energy real estate investment trust raised $682.5 million in its Nasdaq debut. Thursday’s premarket trading saw shares climb another 11% to $36.14, putting the stock on track for a 76% gain from the offering price.
Co-founded by former Texas Governor and U.S. Energy Secretary Rick Perry, Fermi launched in January 2025. The company secured a $12.5 billion valuation in the IPO, a jump from a $3 billion valuation when it issued convertible bonds just months earlier.
The speed of Fermi’s public debut has caught Wall Street’s attention. The company went from founding to IPO in nine months without generating any revenue.
“It speaks to the gold rush happening in AI infrastructure right now. It’s a cash geyser,” said Matt Kennedy, senior strategist at Renaissance Capital.
Fermi sold 32.5 million shares in an upsized offering. The company plans to use IPO proceeds to fund new power plants for AI data centers.
Project Matador Takes Shape
The company’s flagship project aims to deliver 1.1 gigawatts of power by the end of 2026. At full scale, Project Matador could produce up to 11 gigawatts of power.
A gigawatt equals roughly half the Hoover Dam’s full generating capacity. By 2038, the Texas site could generate double the electricity currently powering all of New York City.
Fermi plans to power its data center complex with nuclear energy, natural gas and solar. The company secured a non-binding letter of intent with its first tenant last month for a 20-year agreement.
The company does not expect tenant revenue to begin until 2027. This means investors are betting on future potential rather than current performance.
Market Response and Risks
“Any investor buying Fermi will need to have a mindset of ‘if you build it, they will come,'” Kennedy said. Troy Hooper, co-head of equity capital markets at Mergermarket, pointed to Fermi’s political connections as another positive factor.
“Demand for AI-driven infrastructure and Fermi’s plan to pair it with its own modern power sources has investors intrigued,” Hooper said. The company’s dual listing begins trading on the London Stock Exchange Thursday.
Analysts say execution will determine whether market enthusiasm continues. Investors will watch for signed contracts and construction progress on the ambitious buildout.
Some market observers remain cautious about pre-revenue IPOs. “History offers a cautionary note: many pre-revenue IPOs during the Dot-com era and the recent SPAC boom failed to live up to the hype and ended poorly,” Hooper said.
A successful performance could open doors for other long-duration, capital-intensive AI infrastructure investments. The Nasdaq debut showed strong appetite for AI-related opportunities.
Fermi shares will trade on both Nasdaq and the London Stock Exchange. The dual listing provides access to investors across multiple markets.
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