Fermi Company (FRMI) shares closed up 54% on Wednesday during its NASDAQ debut and gained another 19% in pre-market trading on Thursday.

This energy real estate investment trust (REIT) raised $682.5 million through its U.S. listing, once again demonstrating investors' urgent desire to position themselves in areas related to the artificial intelligence boom.

The company's shares closed at $32.53, compared to its initial public offering (IPO) price of $21. Fermi issued 32.5 million shares at a price within the previously announced range of $18 to $22.

The Amarillo, Texas-based company opened at $25, above the $21 offering price.

While there have been cases of development-stage companies going public before, it's uncommon for a company founded less than a year ago with no revenue to proceed with an IPO at a valuation exceeding $10 billion.

"(Fermi's IPO) confirms the current 'gold rush' in AI infrastructure, which is like a 'cash fountain,'" said Matt Kennedy, senior strategist at Renaissance Capital, a firm focused on IPO research and ETF business.

Fermi expanded its IPO size, ultimately issuing 32.5 million shares at $21 per share, within its previously announced price range of $18 to $22.

Founded in January 2025, this IPO brings Fermi's valuation to $12.5 billion—just months after the company was valued at only $3 billion when issuing convertible bonds.

"Market demand for AI-driven infrastructure, combined with Fermi's plan to integrate such infrastructure with its proprietary modern energy sources, has generated intense investor interest," said Troy Hooper, co-head of Americas equity capital markets at Mergermarket. "The company's political connections are also viewed as another driving factor."

Fermi was co-founded by former Texas Governor and U.S. Energy Secretary Rick Perry with ambitious goals. The company plans to build the world's largest integrated energy and data complex, powered by nuclear, natural gas, and solar energy.

"Build It and They Will Come"

"Project Matador" is Fermi's flagship project, expected to provide 1,100 megawatts of power by the end of 2026, with full build-out potentially reaching 11,000 megawatts. According to U.S. Department of Energy data, 1,000 megawatts is approximately half the total generating capacity of the Hoover Dam.

Last month, Fermi signed a non-binding letter of intent with its first tenant for a 20-year agreement. However, the company doesn't expect to begin generating tenant revenue until 2027.

"Any investor in Fermi needs to adopt a 'build it and they will come' mentality," Kennedy said.

Analysts note that sustaining market enthusiasm will depend on project execution—investors are expected to closely monitor signed contracts and the company's progress in advancing its ambitious construction plans.

Hooper indicated that if this listing succeeds, it could pave the way for other "long-term, high-capital-intensive" AI infrastructure investment projects.

However, some market caution remains.

"History offers a cautionary tale: during the dot-com bubble era and the recent SPAC boom, many non-revenue-generating companies failed to meet market expectations after their IPOs, ultimately ending poorly," Hooper said.