Fermi Inc. Faces Lawsuit After 33% Stock Drop Post-IPO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- IPO Overview: Fermi completed its IPO on October 1, 2025, issuing 32.5 million shares at $21 each, aiming to develop a large electric generation campus for AI data centers, which initially attracted significant investor interest.
- Key Funding Agreement Termination: On December 12, 2025, Fermi disclosed that its first tenant had terminated a $150 million Advance in Aid of Construction Agreement, creating substantial risks for project financing and directly impacting the company's financial stability.
- Market Reaction: Following the termination of the tenant's funding commitment, Fermi's stock price plummeted over 33% to close at $10.09 per share, significantly below the IPO price, reflecting a pessimistic market sentiment regarding the company's future prospects.
- Legal Action: Faruqi & Faruqi LLP is investigating potential securities fraud claims against Fermi and is reminding investors to apply by March 6, 2026, to serve as lead plaintiffs in a class action lawsuit to protect their legal rights.
Analyst Views on FRMI
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.
