Starting the lightning round, a caller asked about Fermi Inc. (NASDAQ:FRMI) on September 29, and Mad Money host Jim Cramer replied:
I wish, it should never have come public, frankly. It’s the kind of thing that got caught up in the mania. It came public, lost people a lot of money. Don’t let it lose any more money for people.
Don’t miss the landmark power deal that puts Fermi’s big bet to the test.
First Customer Lease And Project Matador Development
Fermi Inc. has made progress since its initial public offering, although it remains a development-stage company without operating revenue. In August, the company signed its first customer lease with TensorWave for a 222-megawatt data center at Project Matador in Texas. The 15-year lease is expected to generate approximately $6.5 billion in total revenue for the initial phase, while expansion options could increase the leased capacity to approximately 650 MW. The agreement remains subject to closing conditions, including project-level financing, and Fermi and TensorWave extended the closing deadline to October 31, 2026.
Fermi Inc. has also continued preparing Project Matador for operations. On September 28, the company selected NAES to operate and maintain its natural gas turbine fleet at the campus. Fermi said its first Siemens Energy natural gas turbines have arrived, while engineering, procurement, and construction partners are in place.
Pre-Revenue Profile And Heavy Capital Requirements
Fermi Inc.’s financial profile and funding requirements were significant to Cramer’s skepticism even around the company’s IPO. During the October 1, 2025 episode, he described the company as being closer to a “business plan than an actual business,” noting that it had generated no revenue and had incurred only a little over $6 million in expenses during its first nine months. He added that he wants to “steer clear of this one.” Cramer also questioned whether the company’s proposed nuclear power plant and large data center campus could be financed with the approximately $350 million it had raised during the summer and the additional $600 million to $700 million raised through its IPO. He questioned whether the stock’s $19 billion market cap is justified and said, “When something as ill-advised as Fermi can come public with a bang like this, it makes me nervous.”
Fermi Inc.’s own filings reflect the scale of the funding challenge. The main concern is that the company has yet to generate revenue. In the second quarter filing, the company reported a net loss of $214.8 million for the first six months of 2026 and used $56 million in operating cash. As of June 30, Fermi had $62.5 million in cash and $29.2 million in restricted cash, while total debt stood at $536.9 million, or $520.1 million net of debt issuance costs and discounts.
It also expects substantial additional spending to complete Project Matador. The company estimates that Phase 0 and Phase 1 could require more than $3 billion in incremental capital expenditures, including approximately $2 billion over the next 12 months. Across all planned phases, total capital needs could reach approximately $70 billion to $90 billion, according to the company. The funding requirement is partly being addressed through outside capital. In July, the company issued $431.25 million of 5% convertible senior notes due 2031 for net proceeds of approximately $416.8 million. Management has also said the company will need additional capital to complete Phase 1.
Fermi also faces legal and regulatory uncertainty. The company disclosed that it received a federal subpoena concerning Project Matador and related matters in July, followed by a document request from the Securities and Exchange Commission in August. Neither request contained an allegation of wrongdoing. Fermi Inc. is also defending a securities class action filed in January that alleges materially false or misleading statements connected with its IPO registration statement and later disclosures.
Smart Money Holdings And Short Interest
According to Insider Monkey’s database tracking over 1000 elite hedge funds, 57 of them had a position in the company, compared to 51 in Q1. The short % of float stands at 13.01% as of mid-September.
Fermi Inc.’s first customer agreement and continuing construction activity provide a path toward future revenue, but the company remains pre-revenue and faces substantial financing, execution, regulatory, and legal requirements before Project Matador can become an operating business.
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