Fermi Inc. Faces Class Action After 33% Stock Crash Post-IPO

Written by Emily J. Thompson, Senior Investment Analyst

Source: PRnewswire

Updated: 11 hours ago

0mins

FRMI-2.6%

Should l Buy FRMI?

Source: PRnewswire

Lawsuit Allegations: Hagens Berman is initiating a securities class action against Fermi Inc., alleging that misleading statements during the IPO misrepresented the demand for its flagship project 'Matador,' resulting in a nearly 34% stock price drop on December 12, 2025.
Project Risk Exposure: The termination of a $150 million construction agreement by Fermi's primary tenant has unveiled significant risks associated with its core infrastructure project, raising investor concerns about the company's future profitability.
Investor Action: Hagens Berman is urging investors who purchased Fermi shares during the October 2025 IPO or between October 1 and December 11, 2025, to contact them promptly to participate in the lawsuit, with a lead plaintiff deadline set for March 6, 2026.
Whistleblower Program: Fermi is encouraging individuals with non-public information to utilize the SEC Whistleblower program, where providing original information may yield rewards of up to 30% of any successful recovery, further advancing the investigation into potential corporate misconduct.

Trade with 70% Backtested Accuracy

Stop guessing "Should I Buy FRMI?" and start using high-conviction signals backed by rigorous historical data.

Analyst Views on FRMI

Wall Street analysts forecast FRMI stock price to rise

8 Analyst Rating

8 Buy

0 Hold

0 Sell

Strong Buy

Current: 9.610

Low

20.00

Averages

30.25

High

37.00

Current: 9.610

Low

20.00

Averages

30.25

High

37.00

Citizens

initiated

$30

2026-02-09

Reason

Citizens

Price Target

$30

AI Analysis

2026-02-09

initiated

Reason

Citizens initiated coverage of Fermi with an Outperform rating and $30 price target. The firm views Fermi as a "differentiated" digital infrastructure real estate investment trust developing a large campus near Amarillo, Texas that combines high performance compute data center infrastructure with behind-the-meter power. Despite near-term volatility, "persistent" data center capacity constraints in the U.S. make leasing highly probable over the next couple of months, the analyst tells investors in a research note.

Texas Capital

NULL -> Buy

initiated

$23

2026-01-20

Reason

Texas Capital

Price Target

$23

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.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for FRMI

Unlock Now

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.

Notice of Class Action Lawsuit for Fermi Inc. Shareholders

3 hours agoGlobenewswire

Lawsuit Background: Shareholders of Fermi Inc. who purchased shares during the October 2025 IPO and between October 1, 2025, and December 11, 2025, are encouraged to contact the Gross Law Firm for potential lead plaintiff appointment, indicating significant legal risks for the company.
Allegations Details: The lawsuit alleges that the company made materially false and misleading statements during the class period, including overstating tenant demand for the Project Matador campus and failing to disclose reliance on a single tenant's funding commitment, which poses a risk of termination and affects the company's outlook.
Critical Deadline: Shareholders must register by March 6, 2026, to participate in the class action, emphasizing the urgency and complexity of the legal process, as missing this deadline could forfeit their opportunity to be lead plaintiffs.
Law Firm's Credentials: The Gross Law Firm is a nationally recognized class action firm committed to protecting investor rights and ensuring companies adhere to responsible business practices, highlighting its expertise and dedication to investor advocacy.

Multiple Companies Face Class Action Lawsuits

8 hours agoGlobenewswire

Class Action Overview: The Law Offices of Frank R. Cruz remind investors that class action lawsuits have been filed against companies including agilon health, Fermi Inc., Varonis Systems, and Ardent Health, with deadlines for lead plaintiff motions approaching.
agilon health Allegations: From February 26 to August 4, 2025, agilon health is accused of making materially false statements regarding its financial guidance, failing to disclose industry headwinds, which misled investors about the company's prospects, with a lead plaintiff deadline of March 2, 2026.
Fermi Inc. Lawsuit Details: Fermi Inc. is charged with overstating tenant demand and the reliance on a single tenant's funding for its Project Matador from October 1 to December 11, 2025, with a lead plaintiff deadline of March 6, 2026.
Varonis and Ardent Issues: Varonis is accused of being ill-equipped to sustain its ARR growth from February 4 to October 28, 2025, while Ardent is charged with failing to accurately assess the collectability of accounts receivable from July 18, 2024, to November 12, 2025, with lead plaintiff deadlines of March 9, 2026, for both companies.

Fermi Inc. Faces Class Action Lawsuit

8 hours agoGlobenewswire

Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Fermi Inc., seeking damages for investors who purchased securities during the October 2025 IPO period, highlighting serious concerns over the company's transparency.
False Statement Allegations: The complaint alleges that Fermi materially overstated tenant demand for its Project Matador campus and failed to disclose the extent of reliance on a single tenant's funding commitment, leading to investor misconceptions about the company's prospects.
Risk Disclosure: The lawsuit points out a significant risk that the single tenant may terminate its funding commitment, and the omission of this information rendered the company's previous positive statements misleading and lacking a reasonable basis, potentially causing investor losses.
Investor Action Call: Affected investors are urged to apply by March 6, 2026, to be appointed as lead plaintiff to share in any potential recovery from the lawsuit, underscoring the importance of legal proceedings in protecting investor rights.