Why Did FRMI Stock Tumble More Than 28% In After-Hours Trading Today?

• The company said that the Interim Office of the CEO would include Jacobo Ortiz, its Chief Operating Officer, and Anna Bofa, an observer on its board. 
• The AI infrastructure developer said that it intends to begin its search to replace Neugebauer soon, with additional details expected to be released on Monday. 
• The company has yet to generate revenue as it develops its Matador project, a 5,800-acre nuclear-powered AI data center campus in Texas.

Shares of Fermi LLC (FRMI) tumbled more than 28% in Friday’s extended trading hours after the company reported that its CEO Toby Neugebauer had departed the company.

In a filing with the Securities and Exchange Commission, the company said that Neugebauer had left the company as of April 17, and that an Interim Office of the CEO had been set up to fill the gap.

Leadership Strategy

Fermi said in the filing that the Interim Office of the CEO will include Jacobo Ortiz, Chief Operating Officer at the company, and Anna Bofa, an observer on its board.

The AI infrastructure developer said that it intends to begin its search to replace Neugebauer soon, with additional details expected to be released on Monday.

The company also provided other leadership updates, adding that it had nominated Chief Financial Officer Miles Everson to its board and increased its board size from five to seven directors.

AI Infrastructure Progress

Fermi reported a $486.4 million net loss from its Jan. 2025 inception through the end of the year, largely due to non-cash charges. The company has yet to generate revenue as it develops its Matador project, a 5,800-acre nuclear-powered AI data center campus in Texas.

The company said that its progress has been focused on site readiness, permitting, infrastructure, and tenant discussions. While a prior non-binding lease agreement was terminated, Neugebauer had said that the non-binding letter of intent with the tenant remained in place and continued to serve as a framework for negotiations. The company expects to sign binding tenant deals within a year, with multiple active discussions underway.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around FRMI stock improved from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours amid ‘high’ message volumes.

One user said that despite the selloff, the CEO departure was good news, sounding hope for a new leader with better industry ties.

Another bullish user dismissed the drop on the CEO departure announcement, adding that the company had all the infrastructure set up and was just waiting on a tenant.

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

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