Fermi (NASDAQ:FRMI) Shares Gap Up – Time to Buy?

Fermi Inc. (NASDAQ:FRMI) gapped up prior to trading 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 traded.

Key Fermi News

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

A number of equities analysts recently commented on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Fermi in a report on Thursday, July 2nd. Mizuho cut their price target on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a report on Tuesday, July 28th. UBS Group cut shares of Fermi from a “buy” rating to a “neutral” rating and set a $6.00 price target on the stock. in a report on Tuesday, May 5th. 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, Wall Street Zen cut shares of Fermi from a “hold” rating to a “sell” rating in a research report on Sunday, May 10th. Two investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $20.67.

Fermi Stock Up 22.0%

The company has a market capitalization of $4.57 billion and a P/E ratio of -6.36. The company has a 50-day moving average of $7.14 and a two-hundred day moving average of $7.24.

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

Insider Activity

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

Institutional Trading of Fermi

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in Fermi during the second quarter valued at $38,499,000. Weiss Asset Management LP grew its stake in shares of Fermi by 431.6% in the first quarter. Weiss Asset Management LP now owns 2,415,027 shares of the company’s stock worth $14,104,000 after acquiring an additional 1,960,764 shares during the last quarter. Balyasny Asset Management L.P. purchased a new stake in shares of Fermi in the fourth quarter worth $16,549,000. M&G PLC bought a new position in shares of Fermi during the fourth quarter valued at $14,443,000. Finally, Texas Capital Bank Wealth Management Services Inc bought a new position in shares of Fermi during the second quarter valued at $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.