FRMI Stock Shot Up 7% Pre-Market Today: Here’s The Latest Update On Its Texas Nuclear Project

• Fermi America signed agreements with South Korea’s Doosan Enerbility and Hyundai Engineering & Construction to advance Project Matador.
• The company partnered with Doosan Enerbility to begin manufacturing reactor pressure vessels and steam generators.
• The engineering contract with Hyundai Engineering & Construction is to begin preliminary design work on four AP1000 reactors at Project Matador. 

Fermi America (FRMI) said Monday it has signed two agreements aimed at advancing construction of its flagship Project Matador nuclear facility in the Texas Panhandle.

FRMI’s stock traded over 7% higher in pre-market trade. However, retail sentiment on Stocktwits around the company remained in ‘bearish’ territory. 

Doosan, Hyundai Join Project Matador

The project, which the company calls a cornerstone of America’s “nuclear renaissance,” is expected to generate up to 11 gigawatts (GW) of electricity through a combination of nuclear, natural gas, solar, and battery sources.

Under the first agreement, Fermi partnered with South Korea’s Doosan Enerbility to begin manufacturing reactor pressure vessels and steam generators, which are critical components for the Westinghouse AP1000 reactors it plans to use. Fermi said the arrangement secures its position in Doosan’s production line for the AP1000.

In a second deal, Fermi signed an engineering contract with Hyundai Engineering & Construction to begin preliminary design work on four AP1000 reactors at Project Matador. The company expects to finalize a full construction contract with Hyundai in 2026.

Fermi said the twin agreements build on earlier cooperation with both Korean firms and represent a significant step toward restoring domestic nuclear capacity. 

Analysts See Upside From AI Energy Demand

Cantor Fitzgerald initiated coverage of Fermi on Monday with an ‘Overweight’ rating and a price target of $27, as per TheFly. The price target represents a potential upside of more than 14% from Friday’s closing price. It cited the company’s plans to develop a 5,200-acre AI data center campus in Amarillo, Texas. 

Berenberg analyst Andrew Fisher set a $37 price target with a ‘Buy’ rating. In comparison, Stifel rated Fermi a ‘Buy’ with a $29 target, citing its 99-year land lease from Texas Tech University and strategic access to natural gas and water infrastructure.

Read also: Ethereum Outperforms Bitcoin As Retail Sentiment Improves Ahead Of Fed Rate Decision, Trump-Xi Meeting This Week

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