Fermi (FRMI) Nosedives 15% as Partner Withdraws from Deal

We recently published 10 Stocks Facing Selling Pressure Ahead of Christmas. Fermi Inc. (NASDAQ:FRMI) is one of the biggest losers on Monday.

Fermi extended its losing streak to a fourth consecutive day on Monday, dropping 14.87 percent to close at $8.59 apiece as news that one of its major tenants pulled out from an earlier leasing agreement continued to dent investor sentiment.

In a regulatory filing last week, Fermi Inc. (NASDAQ:FRMI) said that one of its unnamed prospective tenants, which it inked a $150 million leasing agreement with from its 11 GW data center campus in Texas, decided to pull out of the agreement.

Fermi (FRMI) Nosedives 15% as Partner Withdraws from Deal

However, Fermi Inc. (NASDAQ:FRMI) said that it remains in discussions with other companies for potential leasing agreements.

In support of the development of the campus, Fermi Inc. (NASDAQ:FRMI) earlier this month inked a power supply agreement with Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, for the delivery of up to 200 MW of power capacity to the data center.

Initially, SPS would deliver 86 MW of power capacity beginning next month, eventually ramping up the delivery to 200 WM.

“This agreement is yet one more example of Fermi transforming intent into execution, with the strong commercial and technical support of our friends at Xcel Energy,” said Larry Kellerman, Chief Power Officer of Fermi America.

“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.”

For his part, Fermi Inc. (NASDAQ:FRMI) CEO Toby Neugebauer said that partnering with Xcel Energy helps demonstrate that reliable, large-scale energy for artificial intelligence can be developed on time and on budget.

While we acknowledge the risk and potential of FRMI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FRMI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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