Fermi (FRMI) Loses 8% to Profit-Taking After 31% Jump

We recently published 10 Stocks Investors Have Ditched. Fermi Inc. (NASDAQ:FRMI) was one of the worst performers on Thursday.

Fermi snapped a two-day run on Thursday, shedding 7.97 percent to finish at $10.85 apiece, as investors resorted to profit-taking following a whopping 31-percent jump in just the past two trading days of the week.

The recent surge was bolstered by an analyst’s maintained “buy” recommendation for the stock, despite lowering its price target to $35 from $37 previously.

The issuance also overshadowed an ongoing class action lawsuit against Fermi Inc. (NASDAQ:FRMI) by shareholder law firms in relation to alleged misinformation about company developments, including misinformation about tenant demand for the 11-GW Project Matador project campus; that the project would only rely on a single tenant’s funding commitment to finance the construction; and significant risks that the tenant would terminate the funding commitment, among others.

Fermi Inc. (NASDAQ:FRMI) is underway with the Front-End Engineering Design activities for the project, including site layout planning, cooling system evaluations, and cost and schedule development.

It recently raised as much as $500 million from the debt market for the development of Project Matador, and support its target of delivering an initial 2.3 GW of power.

While we acknowledge the potential of FRMI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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