Fermi: Execution Fears Mount After Terminated Deal (Upgrade)
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Seeking Profits5.11K FollowersFollow5ShareSavePlay(10min)CommentsSummaryFermi shares have lost about two-thirds of their value since IPO, reflecting execution risk and financing challenges.FRMI's investment case hinges on ambitious construction plans, including 11 GW capacity and five nuclear reactors, with $80–$120 billion capex needs.Tenant funding cancellation, mounting industry-wide construction delays, and pre-revenue status heighten risk; cash burn will accelerate as projects progress.I now rate FRMI a "Hold"—the selloff has largely occurred, but the stock remains highly speculative and best avoided absent tenant signings. halbergman/E+ via Getty Images Shares of Fermi (FRMI) have been a poor performer since their IPO earlier this year, losing about two-thirds of their value. While the company is trying to take advantage of the hype around AI data centers, its excessive valuation and substantial financingThis article was written bySeeking Profits5.11K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.