Fermi (FRMI) Drops to All-Time Low

We recently published 10 Firms Crashing Harder Than Wall Street. Fermi Inc. (NASDAQ:FRMI) is one of the worst performers on Tuesday.

Fermi fell to an all-time low on Tuesday, as investors continued to unload portfolios on concerns for energy stocks tied to the AI bubble.

In intra-day trading, Fermi Inc. (NASDAQ:FRMI) dropped to its lowest 52-week price of $21.26 before slightly recovering to end the day just down by 14.49 percent at $21.71 apiece.

A number of analysts posted concerns that the AI bubble could heavily impact energy stocks, with the sector jumping to record highs year-to-date.

An opinion piece on Wall Street Journal on Monday noted how people feared about technology companies being overpriced amid the AI frenzy, saying that many of those “are hugely profitable ones” which will keep chugging along even if AI boom fades.

“Not so in the energy sector,” it said.

Another analyst earlier this week believed that Fermi Inc. (NASDAQ:FRMI) is overpriced, having only $2 billion of paid-in capital, with shares issued at very cheap prices, yet already trading at $12 billion in market capitalization.

Fermi Inc. (NASDQ:FRMI) is a newly listed energy company which debuted on the stock market to cash in on the AI frenzy last October 1.

During its initial public offering, Fermi Inc. (NASDQ:FRMI) was able to raise $682 million in fresh funds covering 32.5 million shares at a price of $21 apiece.

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