Fermi Cofounder Toby Neugebauer Says Market ‘Clearly Wants’ This As FRMI Stock Surges To Over 3-Month Highs

With Fermi shares up 14%, founder Toby Neugebauer said that the market is signaling support for cooperation between him and the company's board.

• Neugebauer shared an open letter to shareholders on Tuesday, warning that the current board and management team could destroy shareholder value.
• The former CEO wants shareholders to appoint John Sellers as Chairman and CEO.
• Fermi recently filed a statement with the SEC to block Neugebauer from conducting special meeting.

Fermi Inc (FRMI) remained in investors’ spotlight amid mounting pressure on the board from ousted cofounder and former CEO Toby Neugebauer, over the company’s leadership and strategic direction.

FRMI stock surged over 14% to its highest levels in more than three months, prompting Neugebauer to say in a post on X that the “market clearly wants the Fermi Board and I to work together.”

The post comes a day after he shared an open letter urging shareholders to immediately support the appointment of John Sellers as Chairman and CEO.

What Did Neugebauer’s Letter Say?

Neugebauer called for a leadership overhaul, arguing that the company should engage with major strategic partners to maximize shareholder value. He claimed that several hyperscalers, chipmakers, and large technology investors had shown interest in Fermi's assets but were unable to gain meaningful engagement from the company.

Neugebauer said Fermi’s long-term success depends on securing capital, construction expertise, and customers as it advances Project Matador, its large-scale energy and data center initiative.

Neugebauer warned that the current board and management risk destroying shareholder value, noting that nine senior employees have left since his departure and that the leadership has failed to fill the gaps.

Fermi’s Attempt To Block Neugebauer from Conducting A Special Meeting

Fermi had recently filed a consent revocation statement with the U.S. Securities and Exchange Commission (SEC) to block Neugebauer’s efforts to secure shareholder approval for a special meeting.

Fermi had accused Neugebauer of misconduct during his tenure, claiming his actions disrupted operations and damaged relationships with business partners and potential investors. The company said several counterparties have indicated they would be reluctant to work with Fermi if Neugebauer returns to a leadership role.

Neugebauer had previously criticized the bylaw changes that require a 70% shareholder vote on certain board decisions, arguing that shareholders should have a stronger say in the company's future direction.

What Is Retail’s Take On FRMI?

Retail sentiment surrounding FRMI on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, accompanied by ‘extremely high’ message volumes.

Investors largely focused on the possibility of securing new contracts, with one user expecting an announcement “soon.”

View this Stocktwits post

Another user said the stock would be “off to the races” if the company figures out the boardroom conflict and simultaneously secures new contracts.

View this Stocktwits post

The stock has gained nearly 18% so far this year.

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