Fermi Inc hits 52-week low amid market decline
Fermi Inc's stock has dropped by 31.87% in pre-market trading, hitting a 52-week low. This decline comes as the Nasdaq-100 is down 0.51% and the S&P 500 is down 0.10%, indicating a challenging market environment.
The significant drop in Fermi's stock price is attributed to broad market weakness, as the overall market sentiment has shifted negatively. Despite the company's recent signing of a 200 MW Electric Service Agreement with Xcel Energy, which is expected to support its Project Matador, the stock has not been able to escape the downward trend.
This situation highlights the impact of broader market conditions on individual stocks. While the agreement with Xcel Energy is a positive development for Fermi, the prevailing market weakness has overshadowed this news, leading to a notable decline in the stock's value.
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- Lawsuit Background: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Fermi Inc., alleging violations of federal securities laws related to its October 2025 IPO, affecting all investors who purchased Fermi securities during this period.
- False Statements Allegations: The complaint alleges that Fermi made materially false and misleading statements throughout the class period, failing to disclose the overstatement of tenant demand for its Project Matador campus and the reliance on a single tenant's funding commitment.
- Investor Losses: Investors who suffered losses between October 1, 2025, and December 11, 2025, must apply by March 6, 2026, to be appointed as lead plaintiff to participate in any potential recovery.
- Legal Fee Arrangement: Bronstein, Gewirtz & Grossman, LLC will represent investors on a contingency fee basis, meaning they will only charge fees if they successfully recover funds, providing a no-risk legal support option for investors.
- Lawsuit Background: Bragar Eagel & Squire has filed a class action lawsuit against Fermi in the Southern District of New York on behalf of all investors who purchased Fermi stock during the October 2025 IPO or between October 1 and December 11, 2025.
- Allegations Details: The lawsuit alleges that Fermi and its executives made materially false and misleading statements regarding the company's business operations and prospects, particularly overstating tenant demand and funding commitments for the Project Matador campus.
- Investor Rights: Investors must apply by March 6, 2026, to be appointed as lead plaintiff in the lawsuit, highlighting the potential impact of the case on investor rights and claims.
- Law Firm Overview: Bragar Eagel & Squire is a nationally recognized law firm specializing in securities and commercial litigation, offering no-cost legal consultations to help investors understand their rights and potential claims.
- Class Action Initiated: Fermi Inc. is facing a class action lawsuit due to alleged misstatements during its October 2025 IPO, with investors having until March 6, 2026, to apply as lead plaintiffs, highlighting significant risks regarding the company's transparency and compliance.
- Stock Price Plunge: Following the December 12, 2025, announcement that the first tenant for Project Matador terminated a $150 million construction agreement, Fermi's stock price fell nearly 34%, dropping from $21 to $8.59, indicating severe market concerns about the company's financial health.
- Poor IPO Performance: Fermi sold 37.375 million shares at $21 each during its IPO, but the stock has since declined by 59%, which not only undermines investor confidence but may also hinder future financing efforts, limiting the company's growth potential.
- Severe Legal Consequences: The lawsuit alleges violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 by Fermi and its executives, and an unfavorable ruling could result in substantial damages, further impacting the company's market reputation and operational capabilities.
- Lawsuit Background: Fermi Inc. is facing a class action lawsuit for alleged violations of federal securities laws, involving senior executives and underwriters, highlighting serious investor concerns regarding the company's transparency.
- Stock Price Plunge: On December 12, 2025, Fermi's stock price dropped by $5.16, over 33%, from $15.25 to $10.09, following the termination of the construction agreement by the first tenant, directly impacting investor confidence.
- Project Misrepresentation: Fermi claimed in its IPO to have secured a 20-year lease with an investment-grade tenant, but the actual demand was overstated, leading to diminished investor confidence in Project Matador and affecting future financing capabilities.
- Legal Options: Investors are encouraged to apply to lead the case by March 6, 2026, indicating that legal avenues may provide remedies for affected investors, thereby increasing the legal risks faced by the company.
- Litigation Alert: Hagens Berman law firm is notifying Fermi Inc. investors about an ongoing securities class action against the company and its executives, with a lead plaintiff deadline set for March 6, 2026, indicating significant legal risks for the firm.
- False Statement Allegations: The lawsuit alleges that Fermi misrepresented the demand for its flagship project, 'Project Matador,' and the stability of its primary tenant, misleading investors and undermining market confidence in the company's prospects.
- Stock Price Plunge: Following the December 12, 2025 announcement that its first tenant terminated a $150 million construction agreement, Fermi's stock price fell nearly 34%, reflecting heightened concerns about the company's financial health and operational viability.
- Investor Action Call: Hagens Berman encourages investors who purchased Fermi shares during or after the October 2025 IPO to contact them to participate in potential claims, highlighting the legal challenges that may impact the company's future operations.
- Legal Claim Investigation: Faruq & Faruq LLP is investigating potential claims against Fermi Inc., particularly for investors who purchased securities during the October 2025 IPO, aiming to protect investor rights and seek legal remedies.
- Investor Contact Information: Securities Litigation Partner Josh Wilson encourages investors who suffered losses between October and December 2025 to contact him directly, providing phone numbers to discuss legal options, demonstrating support and concern for investors.
- Class Action Deadline: Investors should note that the deadline to seek the role of lead plaintiff in the federal securities class action against Fermi is March 6, 2026, emphasizing the importance of timely action to secure their legal rights.
- Market Reaction Impact: The securities litigation against Fermi may negatively impact its stock price, prompting investors to closely monitor legal developments to make informed investment decisions.











