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

Fermi Inc. (NASDAQ:FRMI)’s stock price traded down 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. 2,565,579 shares changed hands during trading, a decline of 68% from the average session volume of 8,129,916 shares. The stock had previously closed at $5.84.

A number of other research firms have also recently commented on FRMI. Citizens Jmp began coverage on Fermi in a research note on Monday, February 9th. They set a “market outperform” rating and a $30.00 target price on the stock. Weiss Ratings restated a “sell (e+)” rating on shares of Fermi in a report on Monday, March 23rd. Texas Capital raised Fermi to a “strong-buy” rating in a research report on Tuesday, January 20th. Wall Street Zen lowered Fermi from a “hold” rating to a “sell” rating in a research note on Saturday. Finally, Citigroup assumed coverage on Fermi in a research report on Monday, February 9th. They set an “outperform” rating for the company. Three investment 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 issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of $29.00.

Key Headlines 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 Trading of Fermi

A number of large investors have recently modified their holdings of FRMI. Hsbc Holdings PLC bought a new position in Fermi in the fourth quarter worth approximately $1,056,000. Invesco Ltd. purchased a new stake in shares of Fermi in the 4th quarter worth $8,284,000. Axxcess Wealth Management LLC purchased a new stake in shares of Fermi in the 4th quarter worth $604,000. XTX Topco Ltd bought a new position in shares of Fermi during the 4th quarter worth $1,149,000. Finally, Quadrature Capital Ltd purchased a new position in shares of Fermi during the fourth quarter valued at $1,079,000.

Fermi Stock Performance

The company’s 50 day simple moving average is $8.63. The stock has a market cap of $3.26 billion and a PE ratio of -6.35.

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.