Fermi Soars on Historic AP1000 Nuclear Reactor Partnership Deals in Texas

Fermi America has secured landmark agreements with South Korean firms Doosan Enerbility and Hyundai Engineering & Construction to supply critical nuclear equipment and engineering services for four AP1000 reactors at its Project Matador in Texas, aimed at powering AI data centers. These partnerships address key execution risks related to the global supply chain and engineering expertise, positioning Fermi as a pivotal player in private nuclear energy development for the AI sector. The company, which recently completed its IPO, is projected to deliver up to 11 gigawatts of low-carbon power, with 1.1 GW expected online by 2026, though it currently has no revenue. Market analysts have responded positively, with multiple firms initiating coverage and assigning buy or strong-buy ratings and target prices between $27 and $37, reflecting optimism about Fermi's growth potential. CEO Toby Neugebauer emphasized the importance of international expertise in meeting the scale and speed demanded by the U.S. government and President Trump for nuclear energy projects. Despite enthusiasm, some analysts caution that Fermi's operational experience and ability to meet timelines remain uncertain, and its stock valuation shows a wide range of investor views.