Fervo Energy Stock Surges 33% on Nasdaq Debut After Upsized IPO

Fervo Energy, a Houston-based geothermal power company, saw its stock surge 33% during its Nasdaq debut in May 2026. The company raised $1.89 billion in an upsized initial public offering, selling 70 million shares at $27 each, exceeding the marketed range. This successful listing pushed Fervo's market valuation past $10 billion, driven by intense investor demand linked to the growing energy needs of AI data centers. Major off-take partners include Google, Southern California Edison, and Shell, contributing to a projected revenue backlog of approximately $7.2 billion. The IPO proceeds will primarily fund the Cape Station project in Utah, expected to deliver 500 megawatts of power by late 2026, and the Corsac Station in Nevada. Fervo utilizes horizontal drilling and hydraulic fracturing techniques adapted from the oil and gas industry. Despite reporting a net loss of $70.5 million against minimal revenue in 2025, strong backing from investors like Breakthrough Energy Ventures and Devon Energy fueled the offering. The bookrunning syndicate was led by J.P. Morgan, Bank of America, RBC Capital Markets, and Barclays, marking a significant milestone for the next-generation geothermal sector.