Fermi (FRMI) Ends 5-Day Loss, Soars 18.6% as AI Boosts Anew

We recently published 10 Stocks Beating Wall Street’s Bets. Fermi Inc. (NASDAQ:FRMI) is one of the best performers on Friday.

Fermi snapped a five-day losing streak on Friday, jumping 18.65 percent to close at $23.54 apiece, mirroring the broader market optimism, thanks to renewed optimism for the artificial intelligence (AI) industry.

Fermi Inc. (NASDAQ:FRMI), an energy and data center infrastructure company, is set to benefit more data center developments, known to take up a huge demand for power over the next few years.

Additionally, the rally can be attributed to bargain-hunting after Fermi Inc. (NASDAQ:FRMI) fell to an all-time low during the week, having been dented by analyst concerns about its steep valuation.

Since its market debut on October 1, the company has now been valued at $14.07 billion.

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, proceeds of which will be used to support the continued growth and development, secure personnel, and other general corporate purposes.

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.