Stock Price Crash: Fermi Inc. shares plummeted approximately 33% to close at $10.09 on December 12, 2025, after the company announced that its first tenant had terminated a $150 million agreement, nearly 52% below its October IPO price.
Project Impact: The terminated agreement was intended to fund the Matador project at Texas Tech University, which is designed as a multi-gigawatt energy and data center to support AI infrastructure, and the tenant's exit could lead to project delays or funding shortages.
Investor Confidence Eroded: Fermi had assured investors in November about the strength of the tenant agreement, but the abrupt termination raised questions about the company's transparency, prompting national shareholder rights firm Hagens Berman to launch an investigation.
Legal Consequences: Hagens Berman is investigating whether Fermi misled investors regarding the tenant agreement, urging affected investors to submit their losses, which could expose the company to potential legal liabilities.
FRMI
$8.22+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.
