Fermi (FRMI) Jumps 7.6% on Bargain-Hunting

We recently published 10 Stocks on Fire Ahead of 2026. Fermi Inc. (NASDAQ:FRMI) is one of the best performers on Tuesday.

Fermi bounced back by 7.58 percent on Tuesday to close at $8.09 apiece as investors resorted to bargain-hunting following a four-day losing streak.

The rally was supported by continued investor confidence for the artificial intelligence industry and the strong data center demand, despite taking a beating earlier this month for losing one of its major tenants.

It can be recalled that a major tenant, which it did not identify, decided to pull out of a $150 million agreement earlier. It did not divulge the reason for the termination.

However, Fermi Inc. (NASDAQ:FRMI) assured its investors that it remains in discussions with other companies for potential leasing agreements.

In support of the campus development, Fermi Inc. (NASDAQ:FRMI) earlier this month inked a power supply agreement with Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, for the delivery of up to 200 MW of power capacity to the data center.

Fermi Inc. (NASDAQ:FRMI), also known as Fermi America, is a company engaged in the development of next-generation private electric grids to deliver highly redundant power to support AI.

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.

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