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華爾街日報Fermi's 'Tenant Exit' Triggers 40% Stock Slide — But The Street Still Sees A 3x Jump From Here
A $150 million funding agreement evaporated overnight — and so did half of Fermi Inc's (NASDAQ:FRMI) market cap. The stock was down 40% pre-market on Friday. But in the dust cloud of the stock’s crash, something odd happened: the analysts didn't flinch.
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If anything, the Street's targets still look like they belong to a stock having a bad quarter, not one that supposedly just imploded.
Read Also: This Is What Whales Are Betting On Fermi
Texas Power Capacity Narrative
What spooked traders was the termination of an Advance in Aid of Construction agreement — a non-binding funding arrangement that never actually delivered a dollar to Fermi. The market read it as "first tenant walks." But the filing reads more like "exclusivity expired," with lease negotiations still ongoing and management already in talks with additional 2026 tenants.
The power asset itself — Project Matador — hasn't changed. The land is secured, construction is underway, and the grid interconnection path remains the company's real moat.
Analyst Targets Signal Upside
If this were a structural demand story, someone on Wall Street would've blinked. Instead, Macquarie kept its $35 price target, UBS held at $30, Cantor Fitzgerald stuck to $27, and Stifel reaffirmed $29.
For a stock now trading in single digits pre-market, that's not vote-of-confidence territory — that's the-model-is-fine territory.
Execution Risk, Not Existential Risk
Yes, Fermi still needs funding, tenants, and flawless execution on a Texas power buildout. But a three-week slip in converting an LOI isn't the same as losing the business. The selloff priced in a thesis break. The filings suggest a timing wobble.
If Matador's power comes online on schedule, yesterday's panic may age like most AI-infrastructure overreactions: too fast, too emotional, and ultimately too cheap.
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