Wall Street joins Rick Perry's bet on nuclear and the AI boom as Fermi America goes public

AI generated summary

Fermi America, a Texas-based nuclear and data center start-up co-founded by former Governor Rick Perry, has made a significant splash on Wall Street with its recent IPO. The company, which was established only this year, saw its stock price soar to $32.53 per share, a 55% increase from its initial offering price of $21. This surge has propelled Fermi's market capitalization to over $19 billion, despite the fact that the company has yet to generate any revenue and does not anticipate doing so until at least 2026. The excitement surrounding Fermi is largely fueled by the growing demand for electricity from artificial intelligence ventures, which the company aims to support with its planned nuclear power complex and data center campus.

However, experts caution about the inherent risks associated with nuclear projects, which have a history of delays and cost overruns. Fermi has ambitious plans to bring its first nuclear reactor online by 2032, but it acknowledges the challenges ahead, including a lack of operating history and the need for significant investment. While the company has hired experienced personnel and plans to utilize established nuclear technology, the path to commercial viability remains uncertain. As Fermi navigates these complexities, it represents a new approach to financing nuclear projects by going public, aiming to fill a gap left by traditional utilities hesitant to invest in large-scale nuclear endeavors.