Retail Traders Shrug Off FRMI Crash — Call It A 'Long-Term Money Play'

• On Friday, Fermi announced that, following Neugebauer’s departure, it had established an Interim Office of the CEO to fill the void. 
• The company also said it would begin its search for a new leader soon, with additional details expected on Monday.
• The energy and AI infrastructure company has yet to generate revenue, although it aims to generate power and become operational by the end of 2026.

Shares of Fermi LLC (FRMI) tumbled more than 16% in overnight trading heading into Monday, extending its decline from Friday’s post-market fall after the company announced that CEO Toby Neugebauer had left his position.

Despite the sharp selloff, retail sentiment around FRMI stock on Stocktwits shifted from ‘neutral’ to ‘bullish’ over the past 24 hours, hitting its highest level in a week.

Meanwhile, message volumes remained at ‘extremely high’ levels as retail users actively discussed the impact of Neugebauer’s departure from the company.

What Do FRMI Retail Traders Feel?

One bullish user said that the CEO’s departure looked like “a great thing” for Fermi, adding that they would not short the stock until the new head was announced.

Another user expressed hopes that Board member Lee McIntire or the company’s current Chief Financial Officer, Miles Everson, would be named as the new CEO.

A third bullish user said that FRMI stock is a “long-term money play,” adding that the company’s share price was currently a steal. “Keep buying in 3-4 years, you will be very happy,” the user added.

FRMI Stock: Wall Street Optimistic

Earlier this month, Cantor Fitzgerald assumed coverage of FRMI stock with a price target of $8 and an ‘Overweight’ rating on the company’s shares, as per TheFly. The target indicates an upside potential of about 22% from FRMI’s last close.

Cantor Fitzgerald said that it believes that AI’s proliferation across most businesses, sectors, and the economy makes AI infrastructure an attractive investment, adding that it sees a persistent imbalance between supply and demand over the following five or more years.

Meanwhile, according to data from Koyfin, all nine analysts covering the stock have a rating of ‘Buy’ or higher, with the 12-month average price target at $23.11, indicating an upside potential of more than 252% from the last close.

Leadership Vaccum: What Comes Next?

On Friday, the energy and AI infrastructure company said that after Neugebauer’s departure, it had established an interim CEO office to fill the void, adding that it would soon begin its search for a new leader, with additional details expected on Monday.

The Amarillo, Texas-based company has yet to generate revenue, although its 5,800-acre nuclear-powered AI data center campus, called the Matador project, aims to become operational by the end of 2026.

FRMI stock has declined more than 79% in the past year.

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