Fermi Inc. Faces Securities Class Action with 33.8% Single-Day Stock Drop

Written by Emily J. Thompson, Senior Investment Analyst

FRMI+2.74%

Source: PRnewswire

Updated: 3d ago

0mins

Source: PRnewswire

Lawsuit Notification: Hagens Berman is notifying investors in Fermi Inc. (NASDAQ:FRMI) about the upcoming March 6, 2026, lead plaintiff deadline related to allegations of misleading IPO materials.
Core Allegation: The lawsuit claims that Fermi overstated tenant demand for its flagship 'Project Matador' AI campus and failed to disclose risks associated with its primary anchor tenant, resulting in significant investor losses.
Stock Price Impact: Following the termination of a $150 million construction agreement by the primary tenant, Fermi's stock plummeted 33.8% in a single day on December 12, 2025, falling from $21.00 to $10.09, more than 50% below its IPO price.
Investor Advisory: Affected investors are encouraged to contact Hagens Berman to submit their trading information to participate in the lawsuit and seek compensation, highlighting strong concerns regarding company transparency and management accountability.

FRMI

$9.4516+Infinity%1D

Analyst Views on FRMI

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

8 Buy

0 Hold

0 Sell

Strong Buy

Current: 9.200

Low

20.00

Averages

30.25

High

37.00

Current: 9.200

Low

20.00

Averages

30.25

High

37.00

Texas Capital

NULL -> Buy

initiated

$23

2026-01-20

New

Reason

Texas Capital

Price Target

$23

AI Analysis

2026-01-20

New

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.

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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.