Fermi Shares Plunge 11.09% as AICA Termination Weakens Project Matador Viability

The share price fell to its lowest level so far this month, with an intraday decline of 11.09% on Dec. 19.

The selloff follows the termination of a $150 million Advanced in Aid of Construction Agreement (AICA) with a key tenant for Fermi’s flagship Project Matador.

The deal, which was central to funding the multi-gigawatt energy and data center campus, was abruptly ended without disclosed reasons, eroding confidence in the project’s viability. Fermi had previously highlighted the tenant as a “very creditworthy counterparty” and tied its financial strategy to the agreement’s execution.

Investor concerns have escalated as Hagens Berman and other law firms investigate potential misrepresentations in Fermi’s public disclosures. The firm is examining whether the company adequately disclosed risks tied to the AICA, including its potential termination, during fundraising efforts such as a $784 million October 2025 capital raise. The lack of transparency has fueled speculation about corporate governance lapses, with critics questioning the reliability of management’s strategic assurances.

The fallout underscores broader vulnerabilities in Fermi’s business model. Project Matador, positioned as a critical infrastructure hub for AI, now faces uncertainty without the anchor tenant’s support. Delays or scaled-back development could hinder revenue timelines and weaken the company’s competitive edge in the energy and data center sectors. Legal scrutiny and reputational damage may further strain investor trust, complicating future capital-raising efforts and strategic partnerships.

The ongoing legal and financial challenges have created a volatile investment environment for Fermi, with shareholders bracing for further uncertainty. Meanwhile, industry analysts are closely watching how the company navigates regulatory and market pressures, as well as the broader implications for similar infrastructure projects. These developments raise questions about the long-term sustainability of large-scale projects without clear and reliable funding commitments from major stakeholders.