Fermi Inc

FRMI

Market cap $14.1B

The most oversold stocks in the real estate sector presents an opportunity to buy into undervalued companies.

The AI revolution is driving unprecedented power and infrastructure demand, fundamentally transforming the energy and data center landscape in the U.S. Traditional utilities can't keep pace, so data centers are increasingly building their own power plants and bypassing the grid, especially in Texas and the Permian Basin. Midstream natural gas companies like TRP, WMB, KMI, AM, WES, MPLX, and ET stand to benefit from surging demand, offering both growth and income potential.

U.S. equity markets tumbled in a sudden jolt of volatility as investors - already flying blind on key data - reacted to a surprise, massive tariff announcement on Chinese imports. The White House announced a 100% added tariff on all Chinese imports beginning next month - up from 30% currently - as retaliation to new export controls on rare minerals. The CBOE Volatility Index surged to the highest levels since mid-May in a sudden onset of angst following several months of relatively tranquil market conditions.

Fermi is an AI-focused infrastructure REIT with a bold plan to build mega data centers powered by onsite energy but remains early-stage. FRMI's business model is promising, leveraging a powered shell lease structure and strong demand, but it faces significant execution and regulatory risks. Despite its potential, FRMI trades at an $18B market cap on just $2B of paid-in capital, with extreme dilution and most shares issued at much lower prices.

Fermi Inc., (NASDAQ: FRMI), a Texas-based AI infrastructure startup co-founded by former U.S. Energy Secretary Rick Perry, recently had a successful IPO. Just a few months after its founding in January, the company went public last week, generating robust investor interest despite its infancy and absence of revenue.

Six IPOs debuted this week, while seven SPACs listed, with eight IPOs submitted initial filings, including a handful of sizable issuers. While the US government shutdown complicates the start of the Q4 IPO market, two sizable offerings are lined up to price next week, as both made sure their registrations were declared effective by the SEC prior to the October 1st deadline. Street research is expected for seven companies in the week ahead, and six lock-up periods will be expiring.

Despite being under a year old and having no revenue, Fermi America had a very successful initial public offering (IPO) this week.

Fermi Inc, the AI focused electrical grid developer, started trading on the London Stock Exchange on Thursday, as part of a dual-listing that saw it float on the New York's Nasdaq the day before. The Texas-based company, which was formed in January this year, achieved a valuation of $13.8 billion in the initial public offer, where it raised net proceeds of roughly $635.7 million from an offer of 32.5 million shares.

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 investment thesis hinges on sustained AI demand and Fermi's ability to execute large-scale construction on time and within budget—both highly uncertain.

Fermi's stock is on a tear, and the company hasn't made a cent yet. Shares in the energy and data infrastructure start-up jumped another 15% in premarket trading Thursday, after soaring 55% on debut the day before.