Fermi (FRMI) stock just went parabolic after the company announced a binding customer lease for Project Matador, its massive artificial intelligence (AI) data-center campus in Texas. Shares of the energy and infrastructure company jumped roughly 21% in trading on Aug. 11 after Fermi revealed a 15-year agreement with AI cloud provider TensorWave worth approximately $6.5 billion in contracted revenue. This deal is important because Fermi has been trying to turn its ambitious AI infrastructure vision into a real business.
It now has its first committed tenant. But investors should remember that Fermi remains pre-revenue, unprofitable, and heavily dependent on successfully completing Project Matador. A $20 Billion Reason Why Intel Stock Is in Focus Marvell Technology (MRVL) Stock Might Offer a Quick Bounce Before Earnings Most Analysts Still Aren't Bullish on Tesla Stock, Even After Recent Selloff.
Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Is this the beginning of a major turnaround for FRMI stock? Or is the rally getting ahead of itself?
Fermi shares have been extremely volatile, with FRMI stock trading between $4.47 and $36.99 over the past year, showing just how quickly sentiment can change. Before this week's rally, shares were down substantially in 2026, although the stock is now down just 6% year-to-date (YTD). The biggest problem is that Fermi has been building an enormous AI infrastructure project without meaningful revenue to show investors.
But that equation just changed. The TensorWave agreement covers the first 222-megawatt phase of Project Matador, with deliveries expected to begin in the second half of 2027. The companies also reportedly intend to expand the relationship to more than 650 MW across three phases.
That gives investors something Fermi previously lacked: a binding customer agreement and contracted revenue. The significance of this deal goes beyond the $6.5 billion headline number. Fermi is developing Project Matador on a 8,400-acre site in Texas, with the broader campus designed around large-scale power and AI computing infrastructure.
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