Fermi (NASDAQ:FRMI) Shares Up 10% – Still a Buy?

Fermi Inc. (NASDAQ:FRMI) shot up 10% during mid-day trading on Friday . The stock traded as high as $9.74 and last traded at $9.71. 4,230,777 shares were traded during mid-day trading, a decline of 51% from the average session volume of 8,612,438 shares. The stock had previously closed at $8.83.

Key Fermi News

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Unusual options activity: Reports show large-volume purchases of call options on FRMI, which can force short covering and add upward pressure on the stock as traders position for a rebound or volatility play. Article Title
• Neutral Sentiment: Market commentary highlights a sharp ~30% share decline over the last 30 days and heightened investor scrutiny — explaining both the heavy volatility and why some buyers may be stepping in at lower prices while others remain cautious. Article Title
• Negative Sentiment: Multiple law firms have filed or announced investigations and class‑action suits against Fermi relating to IPO disclosures and subsequent statements; lead‑plaintiff motions have a March 6, 2026 deadline — this raises litigation risk, potential damages, and ongoing headline volatility. Article Title
• Negative Sentiment: Hagens Berman and other firms allege IPO materials were misleading and link suits to the December disclosure that the “First Tenant” terminated a $150M funding agreement for Project Matador — the underlying factual dispute is the core catalyst for the recent share drop and potential claims of disclosure failures. Article Title
• Negative Sentiment: Additional firms (Glancy Prongay, Robbins Geller, Faruqi, BFA, Bronstein, Portnoy, Robbins LLP, etc.) have issued notices urging investors to contact them or file lead‑plaintiff motions — the proliferation of filings amplifies legal costs, management distraction, and uncertainty about remediation or settlements. Article Title

Analyst Ratings Changes

Several brokerages have recently weighed in on FRMI. Mizuho initiated coverage on Fermi in a report on Monday, October 27th. They issued an “outperform” rating and a $27.00 price target on the stock. Weiss Ratings initiated coverage on Fermi in a research report on Wednesday, December 24th. They issued a “sell (e+)” rating on the stock. Macquarie reiterated an “outperform” rating and set a $35.00 target price on shares of Fermi in a research report on Wednesday, November 12th. Rothschild & Co Redburn started coverage on shares of Fermi in a research note on Monday, October 27th. They set a “buy” rating and a $31.00 target price for the company. Finally, Stifel Nicolaus assumed coverage on shares of Fermi in a research note on Monday, October 27th. They issued a “buy” rating and a $29.00 price target on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $31.56.

Fermi Price Performance

The company’s fifty day moving average price is $14.31. The stock has a market cap of $5.64 billion and a PE ratio of -10.93.

Fermi (NASDAQ:FRMI) last issued its earnings results on Monday, November 10th. The company reported ($0.84) earnings per share (EPS) for the quarter.

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.