October 13th 2026, 9:01 PM
Fermi Sees Boost from AMD Credit Support for Project Matador
Key Summary
Fermi Inc. shares surged 14% after AMD announced it will provide credit support for the first phase of Project Matador, a sprawling AI power campus in Texas. The deal is expected to bring in $6.5 billion in revenue over 15 years, with a 650 MW expansion framework available for future growth.
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Background
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.Market Reaction
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.Deal Details
AMD is backing a Phase 1 lease with TensorWave TEX1. 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.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.Future Growth
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.Key Takeaways
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