Fermi (FRMI) Nosedives on Profit-Taking on Double-Digit Upside Potential

We recently published 10 Stocks Investors Are Dumping. Fermi Inc. (NASDAQ:FRMI) is one of the worst performers on Monday.

Fermi extended its losing streak to a third consecutive day on Monday, losing 7.87 percent to end at $26.35 apiece as investors continued to take profits to take advantage of the stock’s 25 percent upside potential.

Fermi Inc. (NASDAQ:FRMI), a newly listed company, debuted on the stock market last Wednesday, offering 32.5 million shares at an initial public offering (IPO) price of $21 apiece, raising as much as $682 million.

In line with the offer, Fermi Inc. (NASDAQ:FRMI) also granted its underwriters a 30-day option to purchase up to an additional 4.87 million shares at the IPO price, less underwriting discounts and commissions.

In other developments, Fermi Inc. (NASDAQ:FRMI) told the Securities and Exchange Commission on Monday that it entered into an employment agreement with Toby Neugebauer to serve as the company’s chief executive for a three-year term with automatic successive one-year renewals, unless earlier terminated.

In line with the agreement, Neugebauer will receive an annual base salary of $500,000.

Fermi is pioneering the development of next-generation electric grids that deliver highly redundant power at a gigawatt scale, required to create next-generation artificial intelligence.

While we acknowledge the potential of FRMI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.