Stock Plunge: Fermi Inc. shares dropped 33% on December 12, 2025, closing at $10.09 after the company announced the termination of a $150 million agreement with its first tenant, marking a 52% decline from its October IPO price.
Project Impact: The project, touted as a multi-gigawatt energy and data center to support AI infrastructure, may face severe funding and construction delays due to the tenant's exit, jeopardizing the company's long-term strategic goals.
Investor Investigation: The significant market reaction has prompted Hagens Berman to investigate whether Fermi has been transparent about the strength and terms of the tenant agreement, potentially exposing the company to legal risks.
Funding Background: Fermi raised nearly $784 million in October 2025 by issuing over 37 million shares at $21 each, but the tenant's exit could undermine its funding capabilities and investor confidence.
FRMI
$8.59+Infinity%1D
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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.
