Fermi Stock Surges Again After Strong Debut. AI Infrastructure Is Red Hot.

Fermi stock jumped 55% on its trading debut and was set for more gains on its second day. (Courtesy Fermi America)

Key Points

• Fermi shares rose 14% to $37.00 in premarket trading, following a 55% gain on Wednesday.
• The Texas-based company plans to build the world’s largest data center, powered by nuclear, gas, and solar energy.
• Fermi, founded in January, went public quickly and aims to use IPO proceeds for new power plants, despite not yet generating revenue.

Shares of Fermi , the data center real estate startup co-founded by former Energy Secretary Rick Perry, rose again on its second day of trading Thursday. It shows strong investor demand for artificial-intelligence infrastructure stocks.

The stock was up 13% to $36.71 in premarket trading, building on a 55% gain Wednesday. Shares are on track to rise 76% from the initial offering price of $21. The stock will be dual listed and shares are due to begin trading on the London Stock Exchange Thursday.

The Texas-based group aims to build the world’s largest data center on a parcel of land in the Texas Panhandle, and fuel it with nuclear power, gas, and solar energy. Proceeds from the IPO will be used to fund new power plants, including for the AI data centers.

In 2038, the Texas site could generate double the amount of electricity as the power plants currently serving all of New York City, according to Fermi CEO Toby Neugebauer, Barron’s has reported.

Founded only in January this year, Fermi has wowed Wall Street with the speed at which the company went public.  The company doesn’t yet generate revenue.

Write to Elsa Ohlen at elsa.ohlen@barrons.com