Fermi (FRMI) Falls on AI Bubble Impact Fears on Energy Stocks

We recently published 10 Stocks With Massive Losses; AI Stocks Not Spared. Fermi Inc. (NASDAQ:FRMI) is one of the worst performers on Monday.

Fermi Inc. saw its share prices decline by 5.96 percent on Monday to close at $25.39 apiece as investor sentiment was dampened by concerns for energy stocks tied to the AI bubble.

An opinion piece on the Wall Street Journal noted: “For all the fears about stretched technology shares, many of those companies are hugely profitable ones that will keep chugging along even if the artificial-intelligence boom doesn’t have legs. Not so in the energy sector.”

It said that a group of non-revenue-generating energy companies has collectively ballooned to more than $45 billion “in hopes that tech companies will one day pay for their yet-to-be-built power.”

For its part, Fermi Inc. (NASDQ:FRMI) is a newly listed energy company that debuted only on the stock market last October 1, cashing in on the AI frenzy.

During its initial public offering, Fermi Inc. (NASDQ:FRMI) was able to raise $682 million in fresh funds covering 32.5 million shares at a price of $21 apiece.

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.