Fermi's $16B Question: When Regulatory Arbitrage Meets AI Bubble Dynamics

Fermi raised $683M to build nuclear power for AI data centers. Our 31-page in-depth teardown applies the Durable Moat Growth methodology to separate bubble hype from discontinuity opportunity.

Credit: Fermi America

On Oct 1, a little-known company named Fermi debuted on the NASDAQ at $21 per share. Its shares jumped 19% to $25 per share. Structured as a real estate investment trust, or REIT, the Texas-based company that wants to build nuclear power to deliver energy for AI data centers saw its shares close at $32.53 on the first day of trading, giving it a valuation of almost $16 billion (as of October 6, at close).

Considering the company has no revenue, no products, and no customers, it is an extraordinary event even for these AI-frenetic times.

Today, I published an exclusive 31-page teardown for Decoding Discontinuity clients that applies our Durable Growth Moat^TM methodology to Fermi’s business model. The result: 1.8/5 on our Durable Growth Moat™ framework, revealing how legitimate technological tailwinds create bubble conditions even when the underlying constraint is real.