Fermi stock surges on $6.5B TensorWave data center deal
4.9 Investments Fermi shares surged up to 23% after a $6.5B, 15-year lease with TensorWave for its Texas data center, securing 222MW and marking its first major tenant and contracted revenue.
Fermi Inc. shares surged after the company announced a 15-year, $6.5 billion lease agreement with TensorWave for its Project Matador data center campus in Texas. The deal covers 222MW of capacity, with phased occupancy starting in the second half of 2027, and includes expansion rights that could boost the total to over 650MW. This agreement marks Fermi's first major tenant and transforms Project Matador from a speculative venture into one with contracted revenue. Following the news, Fermi stock jumped between 16% and 23%, reaching as high as $7.25 on heavy trading volume. Technical indicators suggest short-term trend improvement, though long-term trends remain below key benchmarks. Some analysts caution about overbought conditions and potential risks if execution or financing falters. Mizuho maintained its Outperform rating and $11 price target after the announcement.
