Key Highlights

  • Shares are trading down 10.39% today to $6.81, from a prior close of $7.51
  • Second quarter adjusted loss per share of $0.04 beat the $0.07 estimate expected
  • Completed all five 90-day objectives, including a 15-year, $6.5 billion TensorWave Lease at Project Matador
  • Announced a strategic alliance with Hilcorp, adding approximately 2.6 gigawatts of incremental power capacity
  • Shares remain sharply higher for the week despite today's pullback, with a market Capitalization of $4.34 billion

Shares Pull Back After a Sharp Multi-Day Rally

Fermi (NASDAQ:FRMI) shares are trading down 10.39% today to $6.81, giving back a portion of this week's sharp rally, even as the company reported second quarter results that beat expectations. Adjusted loss per share came in at $0.04, better than the $0.07 loss expected, and the company confirmed it had delivered all five of its 90-day milestones set in May.

Investors appear to be booking profits following the stock's roughly 23% to 35% surge earlier in the week, which had been driven by the landmark 15-year, $6.5 billion TensorWave lease at Project Matador and the naming of veteran energy executive Lee McIntyre as Chief Executive Officer, effective immediately.

What Fermi Does

Fermi is a development-stage, advanced energy and hyperscaler infrastructure company organized as a REIT, purpose-built to power the artificial intelligence needs of tomorrow. Co-founded by former U.S. Energy Secretary Rick Perry, Toby Neugebauer, and Griffin Perry in January 2025, the company is headquartered in Amarillo, Texas, and is developing Project Matador, a massive integrated energy and Data Center campus designed to deliver up to 11 gigawatts of low-carbon, on-demand power to compute-intensive AI businesses through a triple-net leasing model.

Strategic Alliance Adds Capacity as Execution Risk Comes Into Focus

The company announced a strategic alliance with Hilcorp under a build-own-operate-transfer structure, adding approximately 2.6 gigawatts of incremental power to Project Matador within three years, doubling total site capacity to 4.8 gigawatts, with Fermi retaining 100% of base rent income and no upfront capital outlay. The company also strengthened Liquidity through an upsized $431 million convertible senior notes offering, generating net proceeds of approximately $382 million. Even with the strong newsflow, the company remains pre-revenue with a $214.5 million six-month net loss and had just issued $431 million in convertible notes, leaving execution risk as the primary focus for investors going forward.

What It Means for Investors

Fermi's pullback appears to reflect profit-taking after an exceptional multi-day run rather than any negative development, with the company delivering on all five of its stated 90-day milestones and adding meaningful new power capacity through the Hilcorp alliance. With trading Volume still running well above average and the stock remaining sharply higher for the week, the pace of execution on Project Matador will be the key Factor determining whether this pullback proves temporary.