Evercore Sticks With Bullish Call on Fermi Inc. (FRMI)

Fermi Inc. (NASDAQ:FRMI) is among the best NASDAQ stocks under $10 to buy. On December 15, Nicholas Amicucci, an analyst at Evercore ISI, reaffirmed a ‘Buy’ rating on Fermi Inc. (NASDAQ:FRMI), with an unchanged price target of $20, which reflects an upside potential of roughly 133% from the current price.

Earlier on December 5, Fermi Inc. (NASDAQ:FRMI) announced an Electric Service Agreement with Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy. Under the agreement, SPS will deliver up to 200 megawatts of electrical capacity to Fermi’s Project Matador Campus through its high-voltage 115-kilovolt transmission system. While SPS will start providing 86 megawatts of electrical capacity in January 2026, it plans to increase the capacity to 200 megawatts.

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High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.

The power is poised to strengthen Fermi Inc. (NASDAQ:FRMI)’s 11-gigawatt Project Matador Campus in Amarillo, which is already being built for hyperscale AI and computing operations. As stated by Larry Kellerman, its Chief Power Officer,

“Securing reliable and cost-effective power from Xcel Energy today and working together with them to grow our relationship over time is a key component of Fermi’s plans.”

Overall, Fermi Inc. (NASDAQ:FRMI) is a consensus buy among all nine analysts covering the stock. With a price target range of $20 to $39.20, the median target of $30 implies 249.24% upside.

Fermi Inc. (NASDAQ:FRMI) is a Texas-based energy development company specializing in next-generation electric grids. Founded on January 10, 2025, the company is committed to powering the AI needs of tomorrow.

While we acknowledge the potential of FRMI to grow, 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 AI stock that is more promising than FRMI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.