Fermi Shares Tumble 37.9% in July as Convertible Notes Stoke Dilution Fears
Updated
Updated · Yahoo Finance · Aug 7
Fermi Shares Tumble 37.9% in July as Convertible Notes Stoke Dilution Fears
2 articles · Updated · Yahoo Finance · Aug 7
Summary
Fermi stock dropped 37.9% in July, extending a slide that has left the Texas private-grid developer about 80% below its peak.
A convertible-notes capital raise drove the latest selloff as investors weighed added debt and likely dilution, while the broader AI trade also cooled.
Fermi is burning cash aggressively—spending $441 million on capital expenditures in the first quarter of 2026 while generating no revenue from its planned power assets.
Its buildout timeline has slipped to 2027 from an original 2026 target, increasing the odds of further fundraising before any power plants come online.
Even after the plunge, Fermi carries a roughly $3.9 billion market value, leaving investors to bet on future data-center power contracts against heavy execution and financing risk.