Fermi (NASDAQ:FRMI) Shares Down 8.6% – Here’s What Happened

Shares of Fermi Inc. (NASDAQ:FRMI) fell 8.6% on Tuesday . The company traded as low as $9.23 and last traded at $9.40. 2,610,596 shares were traded during mid-day trading, a decline of 61% from the average session volume of 6,725,121 shares. The stock had previously closed at $10.29.

Trending Headlines about Fermi

Here are the key news stories impacting Fermi this week:

• Negative Sentiment: Hagens Berman is scrutinizing a suit against Fermi alleging misrepresentations about demand for “Project Matador” and an alleged $150M anchor-tenant exit — a headline-grabbing claim that increases regulatory and litigation risk for the company. FRMI ALERT: Hagens Berman Scrutinizing Suit Against Fermi
• Negative Sentiment: Multiple national plaintiff firms (Levi & Korsinsky, Schall Law Firm, Berger Montague, Bleichmar Fonti & Auld, Faruqi & Faruqi, Gross Law Firm, Bernstein Liebhard, Bronstein Gewirtz & Grossman, Glancy Prongay Wolke & Rotter, etc.) have announced class-action filings or investor notices tied to Fermi’s October 2025 IPO and a subsequent stock plunge; the firms are soliciting lead-plaintiff candidates ahead of a March 6, 2026 deadline, increasing the likelihood of consolidated litigation and associated legal costs. Example notices: Levi & Korsinsky Notice
• Negative Sentiment: Several notices frame the lawsuits around a reported customer-agreement cancellation that preceded a ~33% stock decline; if plaintiffs prevail or settlements occur, the company could face material financial and reputational consequences. Representative coverage: Gross Law Firm Deadline Notice
• Neutral Sentiment: Short-interest data reported for February appears inconsistent (shows 0 shares and NaN increases), suggesting a data error; as published, it provides no reliable signal on bearish positioning or potential squeeze dynamics. (No article link; internal short-interest entry.)
• Neutral Sentiment: Several unrelated media items referencing “Fermi” in science/tech contexts (e.g., Fermi paradox articles) are present in the feed and do not impact the company’s stock. Fermi paradox article

Analyst Ratings Changes

Several analysts recently weighed in on the company. Stifel Nicolaus assumed coverage on Fermi in a research note on Monday, October 27th. They issued a “buy” rating and a $29.00 price objective on the stock. UBS Group assumed coverage on shares of Fermi in a research note on Monday, October 27th. They issued a “buy” rating and a $30.00 price target on the stock. Mizuho began coverage on shares of Fermi in a research report on Monday, October 27th. They set an “outperform” rating and a $27.00 price objective for the company. Cantor Fitzgerald restated an “overweight” rating on shares of Fermi in a research report on Wednesday, November 12th. Finally, Rothschild & Co Redburn set a $31.00 target price on shares of Fermi in a research note on Monday, October 27th. Three investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Fermi has a consensus rating of “Buy” and an average price target of $31.44.

Fermi Trading Up 2.1%

The business has a fifty day moving average of $9.02.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of FRMI. Leonteq Securities AG bought a new position in Fermi during the fourth quarter worth $30,000. ANTIPODES PARTNERS Ltd bought a new position in shares of Fermi in the 4th quarter worth about $465,000. Empire Life Investments Inc. acquired a new position in shares of Fermi in the 4th quarter valued at about $5,611,000. SBI Securities Co. Ltd. acquired a new position in shares of Fermi in the 4th quarter valued at about $41,000. Finally, WJ Financial Advisors LLC bought a new stake in shares of Fermi during the 4th quarter valued at about $167,000.

About Fermi

Fermi’s mission is to power the artificial intelligence (“AI”) needs of tomorrow. We are an advanced energy and hyperscaler development company purpose-built for the AI era. Our mission is to deliver up to 11 gigawatts (“GW”) of low-carbon, HyperRedundant™, and on-demand power directly to the world’s most compute-intensive businesses with 1.1 GW of power projected to be online by the end of 2026. We have entered into a long-term lease on a site large enough to simultaneously house the next three largest data center campuses by square footage currently in existence.