Fermi (NASDAQ:FRMI) Stock Price Down 6.7% on Analyst Downgrade

Shares of Fermi Inc. (NASDAQ:FRMI) were down 6.7% during mid-day 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.

Other research analysts have also recently issued research reports about the company. Weiss Ratings restated a “sell (e+)” rating on shares of Fermi in a research report on Monday, March 23rd. Wall Street Zen lowered shares of Fermi from a “hold” rating to a “sell” rating in a research report on Saturday, March 28th. Citigroup began coverage on shares of Fermi in a report on Monday, February 9th. They set an “outperform” rating for the company. Texas Capital upgraded shares of Fermi to a “strong-buy” rating in a research report on Tuesday, January 20th. Finally, Citizens Jmp assumed coverage on shares of Fermi in a report on Monday, February 9th. They issued a “market outperform” rating and a $30.00 price target on the stock. Three analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $29.00.

Fermi News Roundup

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Major committed financing pushes Project Matador forward — Fermi America secured a ~$156M committed facility (part of a series of financings that management says pushes total committed financing above $1B), improving project funding visibility. Fermi America Secures $156.25 Million Committed Financing Facility from Yorkville Advisors
• Positive Sentiment: Equipment financing to accelerate build-out — a $165M equipment financing facility was arranged to accelerate delivery of six gas turbines for 2028, reducing a potential procurement/timing bottleneck for the company’s private grid build. Fermi America secures $165 million equipment financing facility
• Neutral Sentiment: Small Q4 EPS beat but no revenue — Fermi reported (non‑GAAP) EPS slightly better than estimates (beat by $0.01) despite continuing zero revenue, which shows expense control but does not resolve top‑line or commercialization risk. Fermi Inc. quarterly earnings
• Neutral Sentiment: Positive messaging on Q4 operational progress — company and some trade pieces highlight “stellar” Q4 performance for Fermi America as a private‑grid pioneer, which supports the growth narrative but lacks clear customer contracts. Fermi America Delivers Stellar Q4 2025 Performance
• Negative Sentiment: Large UBS price‑target cut signals weaker analyst conviction — UBS lowered its target dramatically from $30 to $8 (while keeping a buy rating), a move that likely pressured sentiment and contributed to selling. UBS price target cut coverage
• Negative Sentiment: Customer and revenue risk persists — coverage notes Project Matador still lacks signed customers and the company reports zero revenue and a large accumulated loss, keeping execution and commercial risk front‑of‑mind for investors. MSN: zero revenue and a $486M loss
• Negative Sentiment: Project Matador customer doubts highlighted by press — additional coverage flags that Matador still lacks customers, reinforcing worries that financing alone won’t convert to cash flow without contract wins. MarketWatch: Matador still lacks customers

Institutional Investors Weigh In On Fermi

Hedge funds have recently modified their holdings of the company. SIR Capital Management L.P. acquired a new position in shares of Fermi in the fourth quarter valued at approximately $2,255,000. Hel Ved Capital Management Ltd acquired a new position in Fermi in the 4th quarter valued at $2,182,000. Polymer Capital Management HK LTD purchased a new position in shares of Fermi during the 4th quarter worth $281,000. MIdWestOne Financial Group Inc. acquired a new stake in shares of Fermi during the fourth quarter worth $4,364,000. Finally, Leonteq Securities AG purchased a new stake in shares of Fermi in the fourth quarter valued at $30,000.

Fermi Stock Down 8.0%

The business’s 50 day simple moving average is $8.55. The firm has a market cap of $3.38 billion and a PE ratio of -6.39.

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.