I’ve Been Taking a Beating on This AI Energy Stock. Here’s Where I’m Looking to Add More Shares – and Why.

Fervo Energy (FRVO) stock has surged by 29% following the company's announcement of a significant 396-megawatt (MW) power purchase agreement (PPA) with Google (GOOG) and its subsidiary Google (GOOGL). The deal aims to facilitate the development of the Cape Station enhanced geothermal systems (EGS) GeoCluster, which is set to commence operations in 2028.

Fervo's Chief Executive Officer, Tim Latimer, highlighted the growing demand for reliable electricity and the need for large-scale, 24/7 energy resources. The new PPA aligns with Fervo's repeatable commercial model, enabling the provider to meet customer demands and deliver clean, dependable power to major electricity consumers.

Despite a recent 50% decline from its initial public offering price, Fervo's model may demonstrate greater resilience than many other high-profile IPOs. Google's endorsement of geothermal power is significant as it offers a renewable energy solution that can be placed remotely from populated areas, thereby minimizing its carbon footprint.

As an investor with a long-term perspective, Barchart Insights' John Rowland suggests that today's market pivot levels could present an opportune low-risk entry point into FRVO, with the all-time low serving as a protective stop-loss.