Fermi (NASDAQ:FRMI) Trading Down 6.7% After Analyst Downgrade

Shares of Fermi Inc. (NASDAQ:FRMI) dropped 6.7% during trading on Wednesday after UBS Group lowered their price target on the stock from $30.00 to $8.00. UBS Group currently has a buy rating on the stock. Fermi traded as low as $5.43 and last traded at $5.45. Approximately 2,565,579 shares were traded during trading, a decline of 68% from the average daily volume of 8,129,916 shares. The stock had previously closed at $5.84.

FRMI has been the topic of several other reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Fermi in a report on Monday, March 23rd. Citizens Jmp assumed coverage on Fermi in a report on Monday, February 9th. They set a “market outperform” rating and a $30.00 price target for the company. Citigroup assumed coverage on Fermi in a research note on Monday, February 9th. They issued an “outperform” rating on the stock. Texas Capital upgraded Fermi to a “strong-buy” rating in a research report on Tuesday, January 20th. Finally, Wall Street Zen cut shares of Fermi from a “hold” rating to a “sell” rating in a research report on Saturday. Three 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 assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $29.00.

Key Stories Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Q4 2025 EPS slightly beat expectations (reported ($0.01) vs. consensus ($0.02)), which helped calm some near-term investor fears about execution. MarketBeat Earnings
• Positive Sentiment: UBS kept a “Buy” rating on FRMI and set a new $8 price target, which implies upside from current levels and may support some buyer interest despite cutting the target from $30. Benzinga UBS Note
• Neutral Sentiment: Multiple transcripts and call summaries (Yahoo, MSN, Seeking Alpha) are available; they provide detail on management commentary and guidance but contain no new material cure for the tenant/lease issue. Active investors should read the call transcript for color on sales pipeline and cash runway. Yahoo Earnings Summary
• Negative Sentiment: Major negative headlines center on FRMI’s large FY25 losses (reported ~$486M net loss / GAAP loss of ~$1.13), heavy cash burn, and the company still having no signed tenants for its planned data-center buildout — raising doubt about revenue timing and the massive capital plan. FT: Shares plunge on $486mn net loss
• Negative Sentiment: Stock pressure intensified after IPO lock-up expiration and coverage questioning tenant progress and Project Matador’s customer traction; several outlets highlight a steep post-IPO decline and investor concern about execution risk. Blockonomi: Lock-up end plunge

Institutional Investors Weigh In On Fermi

Several institutional investors have recently modified their holdings of the stock. Balyasny Asset Management L.P. purchased a new position in shares of Fermi in the 4th quarter worth approximately $16,549,000. M&G PLC purchased a new stake in Fermi during the 4th quarter valued at $14,443,000. Nuveen LLC purchased a new stake in Fermi during the 4th quarter valued at $11,067,000. Millennium Management LLC bought a new stake in Fermi in the fourth quarter worth $10,871,000. Finally, Nexpoint Asset Management L.P. bought a new stake in Fermi in the fourth quarter worth $10,412,000.

Fermi Price Performance

The stock has a market capitalization of $3.26 billion and a P/E ratio of -6.35. The stock has a 50 day simple moving average of $8.63.

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.