Stifel Maintains Buy Rating on Fermi (FRMI)

Fermi Inc. (NASDAQ:FRMI) is one of the 10 Best New Stocks to Buy Other Than SpaceX.

On June 23, 2026, Stifel lowered its price target on Fermi Inc. (NASDAQ:FRMI) to $17 from $29 and kept a Buy rating. Stifel said Fermi has apparently made progress in the background after months of post-IPO uncertainty, but the continued wait for a firm contract with an initial tenant has “clearly delayed the story and rattled our valuation.” The firm updated its forecasts and said Fermi remains “a high-risk, high-reward, pre-revenue story.”

On June 11, Citizens said The Information’s report that OpenAI is in talks to lease a 10-gigawatt data center in Ohio through funding provided by Nvidia bodes well for Fermi. Citizens said the report improves the likelihood of a significant signed lease for Fermi as the company seeks its first lease for its developing 11 GW natural gas-powered complex. Fermi shares were up 13% to $6.35 following Citizens’ note.

Stifel Maintains Buy Rating on Fermi (FRMI)

Pixabay/Public Domain

Last month, Evercore ISI analyst Nicholas Amicucci downgraded Fermi to In Line from Outperform with a price target of $11, down from $20. Amicucci said the downgrade is “not a rejection” of the long-term scarcity value of Project Matador or the broader power-demand thesis, but reflects a changed underwriting standard. Amicucci said Fermi 2.0 is “credible evidence” that a reset has begun, but not yet proof that it has worked.

Fermi Inc. (NASDAQ:FRMI) develops next-gen private electric grids that deliver highly redundant gigawatt-scale power to support next-gen intelligence and AI computing.

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 the cheapest AI stock.

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