Fervo Energy (FRVO) Soars 42% on IPO Thanks to AI

Fervo Energy Company (NASDAQ:FRVO) is one of the 10 Stocks With Easy Double-Digit Gains.

Fervo Energy soared by 35.33 percent in its first day as a publicly listed company, thanks to the strong investor appetite for stocks riding the AI wave.

During the session, the stock opened the day at $36, marking an immediate jump of 33.3 percent from its initial public offering (IPO) price of $27, and soared by as much as 42 percent at $38.40 apiece.

Photo from Fervo Energy website

The rally was primarily driven by the continued demand growth for energy services from the rapidly growing artificial intelligence sector.

Fervo Energy Company (NASDAQ:FRVO) successfully raised $1.89 billion in fresh funds from the sale of 70 million shares, propelling its valuation to more than $10 billion.

According to the company, it intends to use the net proceeds for general corporate purposes, including capital expenditures, continued development of its GeoClusters, and expansion of its land holdings portfolio, while the balance will be used for working capital and other operating expenses.

Fervo Energy Company (NASDAQ:FRVO) is a startup energy company engaged in the development of geothermal power sources. It is underway with the development of the Cape Station in Utah, which is targeted to become the world’s largest next-generation geothermal project, with power already set to be supplied to Southern California Edison and Shell, among others.

While we acknowledge the risk and potential of FRVO 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 FRVO and that has 10,000% upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.