Fermi secured a credit support agreement from AMD, sending its stock 14% higher. The company closed at $3.72, up 14.46%, after the premarket deal provided financial backing for Phase 1 of Project Matador, an energy and AI buildout project.
The stock’s sharp rise occurred against a backdrop of modest declines in broader market indices. The S&P 500 closed at 7,805, down 0.02%, while the Nasdaq Composite ended the session at 27,204, down 0.15%. Trading volume for Fermi reached 86.0M shares, coming in about 352% above its three-month average of 19.0M shares.
According to the announcement, the credit support agreement will help Fermi sustain a lease for the first phase of the project, which includes 222 megawatts of gross power capacity. This capacity aligns with the company’s first customer lease, as previously announced on August 10, 2026. Additionally, Fermi and AMD agreed to a separate framework intended to support an expansion plan for the project up to 650 megawatts.
The development drew immediate attention from analysts and investors monitoring the intersection of power generation and AI data center infrastructure. An analyst at Texas Capital Securities raised their price target for Fermi stock to $20 following the news. The analyst noted that AMD’s size and reputation help validate the project, particularly by reducing risk associated with the planned expansion to 650 megawatts.
Peers in the integrated power generation and AI data center infrastructure sector showed mixed performance during the same session. Quanta Services closed at $688.96, down 0.84%, while Talen Energy closed at $382.14, up 0.62%. Investors continued to track project execution and power demand across these companies.
Despite the positive catalyst from AMD, Fermi remains a high-risk investment profile due to its small size and the substantial upfront capital required for its projects. The company IPO’d in 2025 and has fallen 89% since going public.