Fermi (NASDAQ:FRMI) Reaches New 12-Month Low – Here’s What Happened

Shares of Fermi Inc. (NASDAQ:FRMI) reached a new 52-week low on Wednesday. The stock traded as low as $3.12 and last traded at $3.1150, with a volume of 19,075,338 shares. The stock had previously closed at $3.72.

More Fermi News

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: AMD credit support advances Texas AI campus. Fermi announced a credit support agreement with Advanced Micro Devices (AMD) for the first 222-megawatt phase of Project Matador in Carson County, Texas. The agreement is intended to support the project’s lease and represents progress toward securing construction financing. The broader development could eventually reach 650 megawatts. Fermi Signs Credit Support Agreement with AMD and Announces Partnership
• Positive Sentiment: AI cloud lease provides potential commercial visibility. Fermi disclosed additional details of a major AI cloud lease, reinforcing the company’s plan to monetize its energy and data-center infrastructure. The AMD relationship and lease announcement previously sparked a sharp rally and heavy trading volume. Fermi Inc. Details Major AI Cloud Lease Agreement
• Positive Sentiment: Physical infrastructure is progressing. Commentary points to turbine deliveries, more than $1.5 billion invested at the site and preparations for behind-the-meter power generation, supporting Fermi’s strategy of supplying electricity directly to AI data centers. Some analysts view the stock as substantially undervalued if the buildout and leases are completed. Fermi Could Be 81% Undervalued
• Neutral Sentiment: Analysts remain cautious. Evercore ISI reiterated a Hold rating and kept its $11 price target, saying AMD’s backing improves the financing narrative but does not eliminate uncertainty. Fermi Hold Rating Reiterated
• Negative Sentiment: AMD’s agreement is not completed project financing. Fermi still must secure financing and close its major customer lease, reportedly extended to the end of October. Any delay could revive concerns about cash needs, dilution and the feasibility of the multibillion-dollar buildout. Evercore Says Financing Still to Be Secured
• Negative Sentiment: Valuation and execution risks remain elevated. Fermi remains loss-making, has reported liquidity concerns and faces skepticism over its ability to fund expansion. After the AMD-driven rally, profit-taking and renewed focus on these risks likely contributed to the subsequent decrease in shares. Third-quarter results are scheduled for November 12, providing another test of the company’s progress.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on FRMI shares. Weiss Ratings lowered shares of Fermi from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, August 14th. Mizuho lowered their target price on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a report on Tuesday, July 28th. Finally, Stifel Nicolaus lowered their target price on shares of Fermi from $29.00 to $17.00 and set a “buy” rating on the stock in a report on Tuesday, June 23rd. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $20.67.

Fermi Stock Performance

The firm has a market cap of $2.01 billion and a P/E ratio of -2.66. The firm’s fifty day simple moving average is $5.13 and its 200 day simple moving average is $6.01.

Fermi (NASDAQ:FRMI) last issued its earnings results on Thursday, August 13th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.02. During the same period in the prior year, the firm earned ($0.02) earnings per share. On average, equities research analysts predict that Fermi Inc. will post -0.33 earnings per share for the current year.

Hedge Funds Weigh In On Fermi

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC purchased a new stake in shares of Fermi during the 2nd quarter worth approximately $41,000. NewEdge Advisors LLC bought a new position in shares of Fermi during the 1st quarter valued at approximately $54,000. Farther Finance Advisors LLC boosted its position in shares of Fermi by 139.1% during the 3rd quarter. Farther Finance Advisors LLC now owns 10,456 shares of the company’s stock valued at $44,000 after acquiring an additional 6,083 shares during the last quarter. Financial Management Professionals Inc. purchased a new position in shares of Fermi in the second quarter valued at $104,000. Finally, Byrne Asset Management LLC purchased a new position in shares of Fermi in the second quarter valued at $109,000.

Fermi Company Profile

Fermi Inc is an energy and infrastructure company focused on developing large-scale power generation and data center facilities. The company is pursuing an integrated model designed to provide reliable electricity for high-demand computing applications, including artificial intelligence and cloud infrastructure.

Its development activities center on the planned Fermi Nuclear Campus in the Texas Panhandle. The project is expected to combine nuclear power with other generation and energy technologies, potentially including natural gas, renewable energy and battery storage, alongside data center infrastructure.