Fermi rallies after AMD support agreement and partnership announcement
AMD•Fermi shares rose 20% to $3.90 after the data center REIT signed a credit support agreement with AMD for its Texas project. The first phase is planned for 222 MW of gross power capacity, with a framework for future expansion of up to 650 MW.
1. Agreement supports project
Fermi said it is partnering with AMD to support the first phase of Project Matador, its energy and AI infrastructure buildout in Texas. The companies also agreed on a framework for future expansion of up to 650 MW of gross power capacity. Fermi said the credit support agreement represents a key milestone toward securing project financing.
2. Shares rebound
Fermi shares rose 20% to $3.90 on Tuesday, rebounding from a record low in the previous session. The stock remained down about 51% year to date; the company went public in September 2025 at $21 per share.
3. Revenue and analyst estimates
Fermi said in August it expected about $6.5 billion in total contracted revenue from the initial 15-year term of its first-phase lease with AI cloud provider TensorWave. Eight of 10 analysts rated the stock buy or strong buy, while two rated it hold; the median price target was $13.50.
