Fermi (NASDAQ:FRMI) Shares Up 12.5% – Should You Buy?

Fermi Inc. (NASDAQ:FRMI)’s stock price rose 12.5% during trading on Friday . The company traded as high as $10.42 and last traded at $10.42. Approximately 4,122,261 shares traded hands during trading, a decline of 37% from the average daily volume of 6,584,877 shares. The stock had previously closed at $9.26.

Key Stories Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Evercore ISI initiated coverage with a Buy, providing a visible sell?side endorsement that can attract momentum investors and analysts. Article Title
• Positive Sentiment: Fermi announced/closed a $500 million financing round (reported Feb. 11), which materially improves cash runway for Project Matador and lowers near?term dilution/financing risk. Article Title
• Positive Sentiment: Progress on the Hyundai E&C strategic partnership and Project Matador (nuclear/construction collaboration via Fermi America) supports the firm’s long?term revenue narrative for energy/AI infrastructure. Article Title
• Positive Sentiment: Unusually heavy call?option buying was reported (about 19,659 calls), indicating bullish speculative flow or hedged buying from sophisticated traders that can amplify intraday upside.
• Neutral Sentiment: Some market commentary and comparative analyses have been published (coverage by finance sites and head?to?head pieces), which can increase investor attention but are not direct catalysts.
• Neutral Sentiment: Reported short?interest data in recent feeds appears anomalous/erroneous (zero/NaN entries); treat short?squeeze narratives cautiously until exchanges update filings.
• Negative Sentiment: Multiple securities?fraud class?action notices and law?firm solicitations were filed/issued relating to the October 2025 IPO and subsequent disclosures; this breadth of litigation outreach increases legal uncertainty and potential headline risk. Article Title
• Negative Sentiment: Hagens Berman has flagged alleged misrepresentations tied to demand for Project Matador and an asserted ~$150M anchor?tenant exit — a specific allegation that could materially affect revenue forecasts and valuations if substantiated. Article Title

Analyst Upgrades and Downgrades

Several analysts have issued reports on FRMI shares. Texas Capital raised Fermi to a “strong-buy” rating in a research note on Tuesday, January 20th. Evercore set a $37.00 target price on Fermi and gave the company an “outperform” rating in a research report on Monday, October 27th. Rothschild & Co Redburn set a $31.00 price target on Fermi in a research report on Monday, October 27th. Weiss Ratings began coverage on shares of Fermi in a report on Wednesday, December 24th. They issued a “sell (e+)” rating on the stock. Finally, Mizuho began coverage on shares of Fermi in a research report on Monday, October 27th. They issued an “outperform” rating and a $27.00 price objective on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Fermi presently has a consensus rating of “Buy” and an average price target of $31.44.

Fermi Price Performance

The stock has a market capitalization of $6.20 billion and a PE ratio of -12.02. The business has a 50-day simple moving average of $9.59.

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

Institutional Trading of Fermi

Several institutional investors and hedge funds have recently bought and sold shares of the business. M&G PLC bought a new position in shares of Fermi during the 4th quarter worth approximately $14,443,000. Nuveen LLC acquired a new stake in Fermi during the 4th quarter valued at $11,067,000. Boston Partners acquired a new stake in Fermi during the 4th quarter valued at $9,602,000. OpenArc Corporate Advisory LLC bought a new position in Fermi during the fourth quarter worth $8,800,000. Finally, Empire Life Investments Inc. acquired a new position in shares of Fermi in the fourth quarter valued at $5,611,000.

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.