Fermi Shares Plunge 7.21% to Monthly Low on AICA Termination, Legal Scrutiny

The share price fell to its lowest level so far this month, with an intraday decline of 7.21% on Dec. 25.

The drop follows the termination of a $150 million Advanced in Aid of Construction Agreement (AICA) with Fermi’s first prospective tenant for Project Matador, a multi-gigawatt energy and data center development. The agreement, intended to fund construction and shared infrastructure, was abruptly canceled on Dec. 11, triggering immediate skepticism about the project’s viability. The company has not publicly explained the termination, exacerbating concerns over its ability to secure alternative financing or attract additional tenants.

Compounding the uncertainty, a shareholder rights investigation by Hagens Berman is scrutinizing whether Fermi misrepresented the strength of the AICA during its October 2025 fundraising, which raised $784 million. The firm alleges the company overstated the tenant’s creditworthiness and the certainty of the agreement, potentially misleading investors. This legal scrutiny has intensified pressure on management to clarify governance practices and demonstrate a credible path forward for Project Matador, which remains central to Fermi’s growth strategy.

The stock’s sharp decline reflects heightened risks of construction delays, funding gaps, and reputational damage in a competitive, capital-intensive sector.