Fermi shares (FRMI) surge 21% following $6.5 billion lease launch, raising test for financing

Fermi Inc. shares closed Friday at $6.59, down 10.0%, after the data-center power developer priced an upsized $375 million convertible bond. The stock lost 18.2% over the five sessions through Friday while the S&P 500 gained 1.2%, a gap that points to company-specific financing concerns rather than a broad retreat from artificial-intelligence infrastructure.

Fermi Inc. shares were down 17.8% at $6.02 in early Friday trading after the AI-power developer priced an upsized $375 million convertible bond, debt that can later be exchanged for stock. The slide erased about $820 million of market value, more than twice the amount being raised.

Fermi Inc. dropped after hours Thursday as the AI power-campus developer announced a $350 million convertible senior note deal. The new financing gives Fermi added cash, but investors zeroed in on dilution, higher debt, and the company’s ability to deliver on its projects.

Fermi Inc dropped 0.3% to $11.76 in premarket trading Thursday, giving up a slice of the previous session’s gains. Investors took stock of the latest regulatory green light out of Texas on its Project Matador development.

Fermi Inc. stock is back in the spotlight on Monday, December 15, 2025, after the company confirmed that its first prospective tenant terminated a $150 million “Advance in Aid of Construction Agreement” connected to the company’s flagship Project Matador development in Texas. The update has amplified what investors love and fear about Fermi in equal measure: gigantic ambition, huge addressable demand for AI power, and a business model where early customer commitments matter a lot when you’re still in the “prove it” phase. SEC+1

The headline catalyst: a prospective first tenant for Fermi’s flagship Texas development, Project Matador, terminated an agreement that could have advanced up to $150 million toward construction costs—triggering a violent market reaction and a fresh round of debate about what FRMI is worth before meaningful revenue arrives. FT Markets+1