Fermi Inc's stock has dropped by 31.87% in pre-market trading, hitting a 52-week low. This decline comes as the Nasdaq-100 is down 0.51% and the S&P 500 is down 0.10%, indicating a challenging market environment.
The significant drop in Fermi's stock price is attributed to broad market weakness, as the overall market sentiment has shifted negatively. Despite the company's recent signing of a 200 MW Electric Service Agreement with Xcel Energy, which is expected to support its Project Matador, the stock has not been able to escape the downward trend.
This situation highlights the impact of broader market conditions on individual stocks. While the agreement with Xcel Energy is a positive development for Fermi, the prevailing market weakness has overshadowed this news, leading to a notable decline in the stock's value.
Wall Street analysts forecast FRMI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FRMI is 30.25 USD with a low forecast of 20.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
Wall Street analysts forecast FRMI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FRMI is 30.25 USD with a low forecast of 20.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 9.960
Low
20.00
Averages
30.25
High
37.00
Current: 9.960
Low
20.00
Averages
30.25
High
37.00
Texas Capital
NULL -> Buy
initiated
$23
2026-01-20
Reason
Texas Capital
Price Target
$23
AI Analysis
2026-01-20
initiated
NULL -> Buy
Reason
Texas Capital initiated coverage of Fermi with a Buy rating and $23 price target. Fermi is currently developing the world's largest hybrid energy and data center development campus, notes the analyst, who sees the company being "uniquely positioned to capitalize" on the primary constraint facing hyperscalers as they build out to support their AI compute needs, namely bypassing long interconnection queues and achieving reliability. The stock is pricing approximately 10% of the company's projected power capacity at its current valuation, offering "material potential upside to what appears to be a low-risk play on AI infrastructure," the analyst added.
Stifel
Stephen Gengaro
Buy
maintain
2025-12-12
Reason
Stifel
Stephen Gengaro
Price Target
2025-12-12
maintain
Buy
Reason
Stifel analyst Stephen Gengaro notes that in conversation with Fermi management, the company indicated that it is still in negotiations with its first key tenant. The tenant attempted to change the terms of the LOI at the last minute, and Fermi opted to call their bluff. This has delayed an agreement, but management is back in talks with the initial potential client and appears confident it will reach a deal with this client or potentially another customer from their pipeline, Stifel adds. The company noted it is now working to get its potential 2027 clients online in 2026. The LOI for the first tenant is still active, and the firm believes the company has satisfied conditions for its lease from Texas Tech University, and that lease is not at risk of being canceled. Stifel has a Buy rating on Fermi.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for FRMI
Unlock Now
Evercore ISI
Outperform
initiated
$37
2025-10-27
Reason
Evercore ISI
Price Target
$37
2025-10-27
initiated
Outperform
Reason
Evercore ISI initiated coverage of Fermi with an Outperform rating and $37 price target. Fermi is poised to be "a compelling choice" for investors seeking exposure to AI and power demand themes as the company's strategic 99-year lease with Texas Tech University "allows it to sidestep typical regulatory hurdles, fast-tracking its ambitious power build-out plans," the analyst contends.
Macquarie
NULL -> Outperform
initiated
$35
2025-10-27
Reason
Macquarie
Price Target
$35
2025-10-27
initiated
NULL -> Outperform
Reason
Macquarie initiated coverage of Fermi with an Outperform rating and $35 price target.
About FRMI
Fermi Inc. is an advanced energy and hyperscale development company purpose-built for the artificial intelligence (AI) era. The Company is engaged in the development of electric grids that deliver highly redundant power at a gigawatt scale, required to create artificial intelligence. Situated on a 5,236-acre site in Amarillo, Texas, Project Matador is secured by the Company pursuant to the Lease on land owned by the Texas Tech University System. Project Matador is designed to accommodate up to 6.0 gigawatt (GW) of nuclear capacity via 4.0 GW of bifurcated Westinghouse Reactors and 2.0 GW of small nuclear reactor (SMRs). Its HyperRedundant site is strategically located adjacent to natural gas fields in the United States that is within a high-radiance solar corridor, well-positioned for advanced nuclear development and supportive of multiple energy pathways including near-term natural gas power development.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
