Key Points
A multibillion-dollar deal is a strong demand signal for investors.
Fermi has the power that its AI customers need.
- 10 stocks we like better than Fermi ›
Shares of Fermi (NASDAQ: FRMI) rose sharply on Tuesday after the developer of next-generation private electric grids signed the first lease for its Project Matador campus in Texas.
Image source: Getty Images.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Project Matador is progressing
Fermi signed a 15-year lease with artificial intelligence (AI) infrastructure provider TensorWave, valued at roughly $6.5 billion.
Fermi is constructing a facility supported by 222 megawatts (MW) of power. The lease includes expansion rights for two more data centers, which could increase that figure to over 650 MW.
"A lease of this size and this term is a tremendous vote of confidence in Fermi," board chair Marius Haas said.
The site is intended to house "tens of thousands" of high-performance graphics processing units (GPUs) designed by Advanced Micro Devices for AI model training and inference workloads.
"Our customers need hundreds of thousands of next-generation AMD Instinct GPUs in aggregate, on timelines they can count on," TensorWave CEO Darrick Horton said. "Fermi has assembled the power, land, and permits to deliver at that pace, and we are proud to be the first customer at a campus built for the decades ahead."
The phased delivery plan is slated to begin in the second half of 2027.
Energy is the key
Reliable and cost-effective power has emerged as the major constraint in the AI race. Fermi's Project Matador is specifically designed to address this challenge.
Construction at the massive data center project is advancing quickly, supported by more than $1.5 billion in investments and with 6 gigawatts (GW) of capacity already permitted.
This gives Fermi an edge over slower-moving rivals, many of whom are facing political pushback and regulatory delays as homeowner opposition mounts.
Should you buy stock in Fermi right now?
Before you buy stock in Fermi, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fermi wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 11, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
