Fermi (NASDAQ:FRMI) Shares Gap Up – What’s Next?

Shares of Fermi Inc. (NASDAQ:FRMI) gapped up before the market opened on Tuesday . The stock had previously closed at $5.88, but opened at $7.07. Fermi shares last traded at $7.19, with a volume of 15,653,336 shares trading hands.

Trending Headlines about Fermi

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Fermi signed a binding lease with TensorWave subsidiary TensorWave TEX1 for a data center supported by 222 megawatts of power. The first phase is expected to begin delivering a turnkey facility in the second half of 2027 and represents approximately $6.5 billion in contracted revenue, reportedly over a 15-year term. Fermi Announces Binding Lease Agreement with TensorWave
• Positive Sentiment: The companies intend to expand the relationship across three phases to more than 650 MW. Fermi also said certain lease obligations are expected to be guaranteed by a global AI leader, potentially improving the agreement’s credibility and financing appeal. Fermi signs agreement with TensorWave
• Positive Sentiment: The announcement triggered a sharp after-hours rally and continued gains as investors viewed the lease as evidence that Fermi can attract AI customers to its proposed 17-gigawatt Texas campus. Fermi Signs First Binding Lease Agreement
• Neutral Sentiment: The agreement is a significant commercial milestone, but much of the value remains dependent on construction, financing, power availability, customer guarantees, and successful project execution. The initial 222-MW phase is only a portion of Fermi’s broader campus ambitions. Fermi Signs Its First Tenant, But Significant Execution Risks Remain
• Negative Sentiment: Fermi remains a speculative, loss-making company: it recently reported a larger-than-expected quarterly loss, and analysts expect another loss for the current fiscal year. Nuclear-power development, cost overruns, funding needs, and delays could limit the lease’s eventual financial benefit.

Analysts Set New Price Targets

Several brokerages have issued reports on FRMI. Mizuho decreased their target price on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating for the company in a report on Tuesday, July 28th. Wall Street Zen cut shares of Fermi from a “hold” rating to a “sell” rating in a report on Sunday, May 10th. Evercore downgraded shares of Fermi from an “outperform” rating to an “in-line” rating and set a $11.00 price target for the company. in a research report on Friday, May 15th. Stifel Nicolaus decreased their price objective on shares of Fermi from $29.00 to $17.00 and set a “buy” rating for the company in a report on Tuesday, June 23rd. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Fermi in a research report on Thursday, July 2nd. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $20.67.

Fermi Stock Performance

The business’s fifty day moving average price is $7.14 and its 200-day moving average price is $7.24. The stock has a market cap of $4.57 billion and a PE ratio of -6.36.

Fermi (NASDAQ:FRMI) last announced its quarterly earnings results on Thursday, May 14th. The company reported ($0.30) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.25). Analysts forecast that Fermi Inc. will post -0.33 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Fermi news, insider Mesut Uzman sold 79,509 shares of the business’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $6.31, for a total transaction of $501,701.79. Following the completion of the sale, the insider directly owned 670,491 shares in the company, valued at approximately $4,230,798.21. The trade was a 10.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director James Richard Perry sold 863,637 shares of the business’s stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $7.31, for a total transaction of $6,313,186.47. Following the sale, the director owned 15,827,807 shares of the company’s stock, valued at approximately $115,701,269.17. This represents a 5.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 1,022,178 shares of company stock valued at $7,313,580.

Institutional Trading of Fermi

A number of hedge funds have recently bought and sold shares of FRMI. BlackRock Inc. bought a new position in Fermi in the second quarter valued at about $38,499,000. Balyasny Asset Management L.P. bought a new stake in shares of Fermi during the 4th quarter valued at about $16,549,000. Weiss Asset Management LP grew its stake in shares of Fermi by 431.6% during the 1st quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company’s stock valued at $14,104,000 after purchasing an additional 1,960,764 shares during the period. M&G PLC purchased a new stake in shares of Fermi during the 4th quarter valued at about $14,443,000. Finally, Texas Capital Bank Wealth Management Services Inc purchased a new stake in shares of Fermi during the 2nd quarter valued at about $13,334,000.

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.