This AI power company's Trump-named power project still has no customers in sight

By Tomi Kilgore

Fermi's stock tumbles to a fresh low, and is now trading at about a quarter of its IPO price

Fermi's stock sank to a record low, as Project Matador has yet to secure its first client, and the company didn't provide clarity on when it would.

Shares of Fermi tumbled to a record low on Monday, after the artificial-intelligence power-generation startup and real-estate company still couldn't provide guidance on when it will get its first tenant.

With the latest selloff, the company, which has ties to President Donald Trump, was being valued at roughly one-quarter of what it was when its high-profile initial public offering priced after the close on Sept. 30, 2025. And it didn't matter that co-founder and CEO Toby Neugebauer tried to assure investors Monday that tenants would be signed, nor that he said the stock is undervalued.

The primary focus of Fermi (FRMI), which has yet to record any revenue, is Project Matador, which includes the Donald J. Trump Generating Plant. The project aims to provide AI hyperscalers with data-center space powered by solar, gas and nuclear power. The company also has ties to Trump through its co-founder Rick Perry, the former Texas governor who served as secretary of energy during Trump's first term.

On Monday, the company reported a 2025 net loss that widened to $468.4 million as of Dec. 31, from a year-to-date net loss of $353.2 million as of Sept. 30.

But more importantly for investors, CEO Neugebauer addressed in a letter to shareholders the elephant in the room: "We understand the question at the top of every shareholder's mind: When will Fermi announce its first definitive tenant lease?"

His answer may be what disappointed investors, as Neugebauer said the focus isn't on whether the company will secure a tenant, but on securing the right one.

"The first lease is not just a milestone, it will define the benchmark for every agreement that follows, and we intend to get it right," Neugebauer wrote.

The stock dropped 13.3% to a record low close of $5.36, suffering its biggest selloff since December. The company's market capitalization fell to $3.29 billion, compared with a market cap of $12.46 billion when its IPO priced at $21 a share.

On Dec. 12, the stock had plunged a record 33.8% after Fermi said its first prospective client had terminated a tenant agreement.

A company looking to be a real-estate investment trust, which generates income from tenants, needs to have tenants to generate income.

Neugebauer also addressed the weakness in Fermi's stock in the shareholder letter, writing that the current price didn't reflect the value of the company. He did say the company had a "tenant pipeline" that has strengthened since February, and expects to "execute binding tenant agreements" - plural - over the next 12 months.

Despite the stock's sharp selloff in the six months since it's been trading, Wall Street analysts appear to unanimously agree with Neugebauer.

All 10 of the analysts surveyed by FactSet who cover Fermi's stock are bullish. The average stock price target of those analysts was $28.30, which implies 428% upside from current levels.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

03-30-26 1641ET