Fermi Inc. (NASDAQ:FRMI) shares are trending on Thursday after a shareholder group launched a proxy campaign seeking board changes and a strategic review.

FRMI shares gained 22.6% during Wednesday’s regular trading session.

Fermi is developing Project Matador, a large-scale AI power and data-center infrastructure platform in Texas designed to support growing demand from artificial intelligence companies.

Why Is FRMI Stock Moving?

Investor attention appears to be focused on a proxy campaign launched by co-founder and former CEO Toby Neugebauer.

According to a Schedule 14A filing, Neugebauer is seeking to call a special shareholder meeting to expand the board, elect new directors and remove certain current directors. He is also pushing for a strategic review that could include evaluating a potential sale, merger or strategic partnership.

Neugebauer said shareholders should have an opportunity to vote on the company’s future direction and board composition. He also argued that Fermi should conduct a review of strategic alternatives aimed at maximizing shareholder value.

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What Else To Know

The filing highlighted Project Matador, which Neugebauer described as a strategically valuable AI power and data-center infrastructure platform. He said the project could attract interest from potential strategic buyers or partners and that public markets may not fully reflect the value of the company’s assets.

Investors also appeared to react to social media discussion surrounding potential AI infrastructure demand and reports of possible interest from major AI industry participants, although no transaction has been announced by the company.

Trading Metrics, Technical Analysis

Fermi has a market capitalization of approximately $4.39 billion, a 52-week high of $36.99 and a 52-week low of $4.47.

The stock remains well below its 52-week high.

Price Action: FRMI shares closed Wednesday’s regular session up 22.6% at $6.89. The stock slipped 2.03% in after-hours trading to $6.75.

Benzinga Edge Stock Rankings indicate that FRMI is experiencing negative price trends across short-, medium- and long-term time frames.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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