Jim Cramer Slams $19B AI Power Grid Developer as 'Loser'
Fermi Inc debuted at a $19 billion valuation before its stock plunged by over two-thirds. Jim Cramer urged investors to sell, calling the speculative AI power grid developer “a loser” and criticizing its Texas-based nuclear and renewable energy plan as merely a business plan.
1. Cramer’s Sell Recommendation
Jim Cramer publicly advised shareholders to sell Fermi Inc, describing it as a speculative play lacking operational traction. He emphasized his concern that the company resembles a business plan rather than a functioning enterprise and labeled the stock “a loser.”
2. Valuation and Stock Performance
Fermi Inc launched with a $19 billion valuation, driven by AI-related enthusiasm at its October IPO. Since then, the stock has declined by more than two-thirds, reflecting investor skepticism about its ability to execute.
3. Business Plan and Risks
The company aims to build a gigawatt-scale AI data center in Texas powered by integrated nuclear, natural gas, solar and battery storage assets. Critics highlight execution risks, high capital intensity and the extended timeline for a planned nuclear reactor.