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Fermi Inc. finally gave its shareholders something to smile about. On October 13, 2026, the Texas energy developer announced that AMD will provide credit support for the first big lease at Project Matador, its sprawling AI power campus in Carson County.
The stock jumped on the news. For a company down 59% year to date, a double-digit pop counts as a very good Monday.
What AMD actually agreed to
Fermi, which trades on the Nasdaq as FRMI and operates as Fermi America, said AMD is backing a Phase 1 lease with TensorWave TEX1. That entity is a subsidiary of AI cloud provider TensorWave.
The lease covers 222 MW of gross power capacity. Fermi first disclosed the deal on August 10, 2026, and it is projected to bring in approximately $6.5 billion in revenue over 15 years.
AMD’s role goes beyond moral support. The credit backing includes firm commitments for project-level financing, which is the kind of paperwork lenders want to see before they write large checks.
There is also room to grow. AMD has an expansion framework covering up to 650 MW, nearly three times the Phase 1 capacity.
Energy deliveries for the initial 222 MW are scheduled to begin in phases during the second half of 2027. The power is primarily meant to run tens of thousands of AMD Instinct GPUs used for AI training.
How the market reacted
Fermi shares climbed between 12% and 13.9% in premarket trading. Intraday, the gains reached as high as 18%, with premarket highs landing somewhere near $3.65 to $4.06.
AMD did not share in the celebration. Its shares slipped modestly as AI supply chain stocks broadly showed weakness on the day.
The bigger picture at Project Matador
Project Matador is not a modest undertaking. The campus sits on approximately 8,400 acres and is designed around a private-grid model.
The long-term target is up to 17 GW of total capacity. About 6 GW of that is already permitted.
More than $1.5 billion has already been invested in the project.
What this means for Fermi and its stakeholders
The revenue figure deserves careful reading. The approximately $6.5 billion is a projection spread across 15 years, not cash in hand, and it depends on the lease performing as planned over that entire stretch.
The 650 MW expansion framework is the piece worth watching. If it converts into firm commitments, Fermi would have a much stronger case that Matador can attract tenants beyond a single anchor.
Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.
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