Fermi Inc. (FRMI) stock traded lower Friday after Cantor Fitzgerald maintained its Overweight rating but cut its price forecast from $12 to $8, citing a revised outlook for the AI infrastructure developer.

The downgrade in its price forecast comes as Fermi seeks to ease near-term debt pressure through a financing amendment that could eliminate about $56 million in potential principal payments through the second quarter of 2027.

However, the agreement carries $25 million in amendment fees.

MUFG Amendment Eases Near-Term Debt Pressure

Fermi amended its equipment supply loan agreement with MUFG Bank, Ltd., removing a requirement to secure a 400 MW lease or offtake agreement at Project Matador by Nov. 10, 2026.

The change also eliminates a potential increase in amortization tied to missing that milestone.

Fermi said the amendment could eliminate approximately $22 million in potential principal payments in the fourth quarter of 2026, $19 million in the first quarter of 2027 and $15 million in the second quarter.

MUFG will remain administrative agent for a new syndicate of lenders.

AMD Deal Remains Key Operational Catalyst

The financing update follows Fermi's recent credit-support agreement with Advanced Micro Devices Inc. (AMD) tied to the first phase of Project Matador.

The agreement supports the underlying TensorWave lease covering 222 MW of gross power capacity. Expansion options could increase the partnership's capacity to more than 650 MW over time.

The AMD backing adds credit support to Fermi's initial Project Matador buildout and remains an important step in advancing the project's commercial development.

Fermi Earnings And Analyst Outlook

Fermi is scheduled to report third-quarter earnings on Nov. 12.

Wall Street expects a loss of 7 cents per share, compared with a loss of 84 cents a year earlier, and revenue of $2.40 million versus no revenue in the prior-year period.

The stock carries a Buy rating with an average price forecast of $12.40 (high: $17.00; low: $8.00) across 8 analysts.

Cantor Fitzgerald maintained Overweight and lowered its price forecast to $8 on Oct. 16, while Macquarie maintained Outperform with a $15 forecast on Oct. 14.

FRMI Stock Price Activity: Fermi shares were down 2.36% at $3.31 at the time of publication on Friday, according to market data.