Fermi Inc (Nasdaq: FRMI, LSE: FRMI) shares closed up 14.46% at $3.72 on 13 October 2026 after the company signed an AMD credit support deal backing the first phase of its Texas data-centre project.
The agreement covers 222 megawatts of gross power capacity for Phase 1 of Project Matador in Carson County, Texas, Fermi said in a statement. Trading volume ran roughly 352% above its three-month average, according to The Motley Fool.
AMD credit support deal clears financing hurdle
AMD (NASDAQ: AMD) is backing a lease Fermi needs to close and finance, with the 222MW figure matching the first customer lease Fermi announced on 10 August 2026. Fermi chief executive Lee McIntire said: “We are thrilled to partner with AMD as we advance development at Project Matador,” according to a quote carried by Yahoo Finance.
Mathew Hein, AMD’s senior vice president and chief strategy officer of corporate development, framed the deal in similar terms. “Together, we are enabling customers to deploy AMD-powered AI infrastructure at scale and supporting our continued data center momentum,” he said, as reported by Investing.com UK.
Fermi has invested more than $1.5bn in the Panhandle buildout to date, the company told Investing.com UK. The credit support arrangement is described as a milestone toward project financing rather than financing itself, and the underlying TensorWave lease is due to close by 31 October, according to Blockspace Media.
A partnership with room to grow
Fermi and AMD also signed a separate framework agreement that could scale the partnership to as much as 650MW of additional capacity, beyond the 222MW already under lease. That expansion capacity is not yet leased, Blockspace Media reported, leaving the larger figure as a ceiling on ambition rather than a contracted commitment.
AMD’s own shares moved little on the news, slipping about 2.2% to $581.23 the same day, a sign the market treated the announcement as a Fermi-specific catalyst rather than a material AMD event, per Blockspace Media’s reporting.
Losses mount as Fermi builds out
Fermi carries no reported revenue, and its losses have been heavy. The company posted a net loss of $188.69m for the quarter ended 31 March 2026, according to its 10-Q filed with the SEC on 15 May 2026. A year earlier, Fermi reported a net loss of $346.81m for the quarter ended 30 September 2025, per its filing from November 2025.
The absence of revenue makes standard valuation metrics such as price-to-sales impossible to apply, GuruFocus noted, underscoring that Project Matador remains a pre-revenue build financed through credit and debt agreements rather than operating cash flow.
Even after Monday’s gain, Fermi shares remain down nearly 28% over the preceding 20 trading sessions, having traded as high as $5.15 and as low as $3.22 in that window, according to consolidated exchange data. The stock’s short ratio, tracked by FINRA, rose to 0.551 on 13 October from 0.372 the previous session, consistent with a heavily traded, news-driven day rather than a sustained shift in positioning.
What the credit support deal does and doesn’t settle
The AMD credit support deal removes one obstacle to closing Fermi’s first customer lease but does not itself constitute project financing. Investors tracking the stock will be watching whether the TensorWave lease closes by its end-of-October target and whether any of the additional 650MW framework converts into signed capacity, the next concrete test of whether Monday’s announcement translates into contracted revenue for a company that currently has none.
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