Fermi (NASDAQ:FRMI) Shares Gap Up – Still a Buy?

Fermi Inc. (NASDAQ:FRMI)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $5.40, but opened at $5.76. Fermi shares last traded at $5.6350, with a volume of 5,792,950 shares changing hands.

Key Stories Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Project Matador (Texas Panhandle AI/data‑center site) is reportedly advancing, which supports the company’s long‑term asset thesis if it secures hyperscaler tenants. Article Title
• Positive Sentiment: Former CEO Toby Neugebauer (a large shareholder) publicly called for a sale to “maximize shareholder value,” signaling a potential near‑term value‑unlocking transaction or process that could be a catalyst. Article Title
• Neutral Sentiment: Company announced “Fermi 2.0,” a strategic evolution with a new board chair, leadership transitions and office moves — the plan aims to reset priorities but details and execution timeline remain unclear. Article Title
• Neutral Sentiment: PR from Toby highlights he and insiders own ~40% of shares and that he hasn’t sold since the IPO—this alignment can reassure some investors but also concentrates control. Article Title
• Negative Sentiment: Abrupt departures of CEO Toby Neugebauer and CFO Miles Everson prompted a sharp selloff as investors worry about leadership stability during a capital‑intensive buildout and while the company has yet to secure anchor hyperscaler tenants. Article Title
• Negative Sentiment: Regulatory/litigation risk: a shareholder law firm has opened an investigation into potential fiduciary breaches, which could lead to lawsuits or distractions for management. Article Title
• Negative Sentiment: Analyst and market commentary highlight that Fermi still faces the critical challenge of finding cornerstone customers for Project Matador; failure to land hyperscaler tenants would impair revenue prospects and raise funding needs. Article Title

Wall Street Analyst Weigh In

FRMI has been the subject of several research reports. Texas Capital raised shares of Fermi to a “strong-buy” rating in a report on Tuesday, January 20th. Cantor Fitzgerald initiated coverage on shares of Fermi in a report on Thursday, April 9th. They set an “overweight” rating and a $8.00 price objective for the company. Citizens Jmp initiated coverage on shares of Fermi in a report on Monday, February 9th. They set a “market outperform” rating and a $30.00 price objective for the company. Citigroup initiated coverage on shares of Fermi in a report on Monday, February 9th. They set an “outperform” rating for the company. Finally, UBS Group decreased their price objective on shares of Fermi from $30.00 to $8.00 and set a “buy” rating for the company in a report on Wednesday, April 1st. Three equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of $26.89.

Fermi Stock Down 2.7%

The firm’s fifty day moving average price is $7.65 and its two-hundred day moving average price is $13.02. The stock has a market capitalization of $3.31 billion and a PE ratio of -6.27.

Insider Activity at Fermi

In other news, COO Blanes Jacobo Ortiz sold 427,363 shares of the business’s stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $4.58, for a total transaction of $1,957,322.54. Following the completion of the transaction, the chief operating officer directly owned 5,469,092 shares of the company’s stock, valued at $25,048,441.36. The trade was a 7.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Miles E. Everson sold 427,004 shares of the company’s stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $4.58, for a total transaction of $1,955,678.32. Following the sale, the chief financial officer directly owned 9,969,791 shares of the company’s stock, valued at approximately $45,661,642.78. This represents a 4.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 13,435,207 shares of company stock valued at $67,803,539 over the last ninety days.

Institutional Trading of Fermi

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Hsbc Holdings PLC bought a new position in shares of Fermi in the fourth quarter worth approximately $1,056,000. Invesco Ltd. bought a new position in shares of Fermi during the fourth quarter worth $8,284,000. Axxcess Wealth Management LLC bought a new position in shares of Fermi during the fourth quarter worth $604,000. XTX Topco Ltd bought a new position in Fermi during the fourth quarter valued at $1,149,000. Finally, Quadrature Capital Ltd bought a new position in Fermi during the fourth quarter valued at $1,079,000.

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.