Why Fermi Stock Collapased 37.9% in July
Shares of Fermi (NASDAQ: FRMI) fell 37.9% in July, according to data from S&P Global Market Intelligence. The AI trade came to a halt in July, and power beneficiaries like Fermi crashed along with it. A company trying to build a private electric grid in Texas, Fermi made its public markets debut last year and has seen its stock sink a quick 80% from its highs.
Here's why it fell again in July, and whether shares are worth buying the dip on today.
Fermi's pitch to investors is to build a massive amount of power generation in Texas for private consumption, meaning for artificial intelligence (AI) data centers. There are clearly a ton of data centers being built in Texas, which Fermi could help companies get to market by bringing power directly to them.
Source Fool.com
