Fermi (NASDAQ:FRMI) Trading Down 10.7% – Time to Sell?

Fermi Inc. (NASDAQ:FRMI)’s share price traded down 10.7% during trading on Thursday . The stock traded as low as $10.51 and last traded at $10.53. 5,428,793 shares were traded during trading, a decline of 23% from the average session volume of 7,064,265 shares. The stock had previously closed at $11.79.

Key Fermi News

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Fermi secured a structured credit facility for Project Matador, supporting its financing plan for the large AI data‑center campus and reducing near‑term funding uncertainty. TipRanks: Fermi Secures Structured Credit Facility
• Positive Sentiment: An analyst reaffirmed a ‘Buy’ rating recently, which coincided with a double‑digit intraday rally earlier this week — a catalyst for short‑term buying interest. InsiderMonkey: Analyst Reaffirms Buy
• Neutral Sentiment: Fermi announced a fourth‑quarter 2025 earnings/webcast date (March 30) — an upcoming event where management will update on Project Matador progress; results and commentary could swing the stock. PR Newswire: Earnings Call
• Positive Sentiment: Operational progress: reports indicate Fermi has locked in ~$100M for high‑voltage equipment for its buildout, signaling execution on infrastructure procurement. Daily Energy Insider: $100M High‑Voltage Gear
• Negative Sentiment: Multiple law firms have filed or issued notices for a securities‑fraud class action alleging Fermi misled investors (claims reference cancelled customer agreements and overstated demand for Project Matador); the March 6 lead‑plaintiff deadline is prompting waves of legal notices — this raises litigation risk and potential liability. Business Wire: Court Alert on Class Action
• Negative Sentiment: Analysts and commentators flag that Fermi is still pre‑revenue and will likely need additional capital to scale; dilution or higher borrowing would pressure the stock if financing terms are unfavorable. Seeking Alpha: Pre‑Revenue REIT Needs More Capital
• Negative Sentiment: Regulatory/tax scrutiny reports suggest the IRS could complicate Fermi’s tax treatment as it scales, which would add execution risk and potential unforeseen costs. MSN: IRS Could Complicate Tax Treatment

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Weiss Ratings started coverage on Fermi in a report on Wednesday, December 24th. They issued a “sell (e+)” rating for the company. Citizens Jmp started coverage on Fermi in a report on Monday, February 9th. They issued a “market outperform” rating and a $30.00 price target for the company. Texas Capital raised shares of Fermi to a “strong-buy” rating in a research note on Tuesday, January 20th. Citigroup assumed coverage on shares of Fermi in a research note on Monday, February 9th. They issued an “outperform” rating for the company. Finally, Macquarie Infrastructure reissued an “outperform” rating and issued a $35.00 price target on shares of Fermi in a research note on Wednesday, November 12th. Three investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Buy” and an average price target of $31.44.

Fermi Price Performance

The business’s 50 day simple moving average is $9.07. The firm has a market cap of $6.47 billion and a PE ratio of -12.54.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of FRMI. Leonteq Securities AG acquired a new position in shares of Fermi during the 4th quarter worth approximately $30,000. PNC Financial Services Group Inc. acquired a new stake in shares of Fermi in the 4th quarter valued at approximately $36,000. Aspect Partners LLC bought a new position in shares of Fermi in the fourth quarter valued at $38,000. SBI Securities Co. Ltd. acquired a new position in Fermi during the fourth quarter worth $41,000. Finally, MML Investors Services LLC acquired a new position in Fermi during the fourth quarter worth $81,000.

Fermi Company Profile

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.