New Star of AI Power Drops 14% in One Month Post-IPO

Fervo Energy Company (NASDAQ: FRVO) shares closed at $23.95 on the U.S. market on the 7th, plunging 14.1%. Its market capitalization fell to about $6.9 billion (roughly KRW 9 trillion), erasing nearly $850 million (about KRW 1.2 trillion) in value in a single day.

After raising approximately $2.2 billion (nearly KRW 3 trillion) in its May Nasdaq IPO, Fervo quickly emerged as a leading “AI power” play. The company expanded its geothermal power supply agreement with Google to up to 3 GW and is collaborating with NVIDIA and U.S. national laboratories on AI-driven geothermal simulations.

On Wall Street, analysts still set a 12-month average price target of around $46, implying almost 100% upside from current levels even after the recent pullback.

Headquartered in Houston, Fervo Energy develops geothermal power using Enhanced Geothermal Systems (EGS)—adapting oil and gas drilling techniques—to provide 24/7 carbon-neutral electricity to data centers and major tech firms.

Backed by global climate-tech investors such as Bill Gates–led Breakthrough Energy, Fervo has drawn attention as an AI-era power infrastructure play following its 2026 Nasdaq listing.