Key Stats for Fermi Stock
- Price change for Fermi stock: 21%
- $FRMI Stock Price as of Aug. 11: $7
- 52-Week High: $37
- $FRMI Stock Price Target: $17
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What Happened?
Fermi (FRMI) stock jumped 21.1% on Tuesday after the company landed its first-ever binding customer for Project Matador.
The deal came from TensorWave, an AI cloud computing company, and it’s a big one: 222 megawatts of power over 15 years, worth nearly $6.5 billion.
This is Fermi’s first real proof that customers want what it’s building. TensorWave signed on for a phased rollout starting in the second half of 2027.
Spread evenly across the contract’s life, that works out to roughly $433 million a year in revenue, though actual timing will vary as the project ramps up.
The lease covers only part of the planned campus. If expansion options get used, the site could eventually support more than 650 megawatts.
The first building will house tens of thousands of AMD graphics processing units for TensorWave’s AI workloads.
Fermi Chairman Marius Haas called it proof of confidence in the company, saying TensorWave is exactly the kind of anchor customer Project Matador was built for.
That matches what management has been saying since April, when Fermi went through a major leadership shake-up. The board removed former CEO Toby Neugebauer for cause, brought in an interim CFO, and set a 90-day plan built around five goals, including landing a binding tenant agreement. Tuesday’s news checks that box.
A signed lease is only part of the story. Fermi still needs to line up the financing to actually build the facility before rent starts coming in.
The company also announced a second deal Tuesday evening with Hillcore Energy Capital, which will fund, build, and operate a 2.6-gigawatt power plant. Fermi would then buy electricity from Hillcore as tenant leases get finalized. This setup limits how much cash Fermi itself has to put up front, according to co-president Jacobo Ortiz.
That matters because Fermi hasn’t reported any revenue yet. Its most recent quarterly filing showed the company didn’t have enough cash on hand to cover obligations coming due within a year, based on existing resources alone. To bridge that gap, Fermi has lined up $785 million in equipment financing and a $156 million commitment from Yorkville.
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What the Market Is Telling Us About Fermi Stock
Shares of Fermi stock closed Tuesday at $7.12, then climbed another 3% in early premarket trading, on volume more than double the three-month average. Still, Fermi stock remains far below its $21 IPO price from September 2025.
Wall Street is split on where Fermi stock goes from here. All eight analysts tracked by S&P Global rate it a Buy, with an average price target of $17.
But Cantor Fitzgerald is far more cautious, setting its target at just $8. That gap shows how much of Fermi’s valuation depends on whether the financing actually comes together.
For now, the real test for Fermi stock isn’t customer demand anymore. It’s turning this signed lease into an actual financed, under-construction project, without spending cash faster than it can raise it.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
