Fermi Inc. (FRMI) Ends Losses, Jumps 7% on Bargain-Hunting

We recently published 10 Hot Stocks Sparking Buying Frenzy. Fermi Inc. (NASDAQ:FRMI) is one of the best performers on Tuesday.

Fermi snapped a three-day losing streak on Tuesday, jumping 6.91 percent to close at $28.17 apiece as investors resorted to bargain-hunting to take advantage of its cheap valuation, supported by optimism from strong demand for AI.

Fermi Inc. (NASDAQ:FRMI) is a newly listed company that successfully raised $682 million from its initial public offering (IPO) covering 32.5 million shares at a price of $21 apiece.

Fermi Inc. (FRMI) Ends Losses, Jumps 7% on Bargain-Hunting

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In line with the offer, Fermi Inc. (NASDAQ:FRMI) also granted its underwriters a 30-day option to purchase up to an additional 4.87 million shares at the IPO price, less underwriting discounts and commissions, potentially raising an additional $102 million.

From its IPO price to its latest closing price, the stock was already up by 34 percent.

In other developments, Fermi Inc. (NASDAQ:FRMI) told the Securities and Exchange Commission on Monday that it entered into an employment agreement with Toby Neugebauer to serve as the company’s chief executive for a three-year term with automatic successive one-year renewals, unless earlier terminated.

In line with the agreement, Neugebauer will receive an annual base salary of $500,000.

Fermi is pioneering the development of next-generation electric grids that deliver highly redundant power at a gigawatt scale, required to create next-generation artificial intelligence.

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.