FRMI Stock Rips On $6.5B TensorWave Deal — Mizuho Says ‘Long-Awaited Catalyst’ Has Arrived

• Mizuho had previously expected Fermi to bring 500 megawatts of capacity online in 2027 and another 500 MW in 2028.
• The firm said the newly signed lease represents an important step toward that outlook.
• The first phase of the agreement covers 222 MW beginning in the second half of 2027 and represents approximately $6.5 billion in contracted revenue.

Fermi Inc. (FRMI) shares were in focus on Tuesday after the company announced a data center lease with TensorWave, drawing a bullish response from Wall Street.

According to an Investing.com report, analysts at Mizuho reiterated their ‘Outperform’ rating on Fermi with a $11 price target. Citizens maintained its ‘Market Outperform’ rating and $30 price target, implying an upside potential of about 318% from current levels.

Fermi shares were up nearly 22% in Tuesday’s opening trade. FRMI was among the top trending tickers on Stocktwits at the time of writing.

FRMI’s TensorWave Deal Marks A ‘Long-Awaited Catalyst’, Says Mizuho

Mizuho had previously expected Fermi to bring 500 megawatts of capacity online in 2027 and another 500 MW in 2028. The firm said the newly signed lease represents an important step toward that outlook.

The first phase of the agreement covers 222 MW beginning in the second half of 2027 and represents approximately $6.5 billion in contracted revenue. Expansion rights for two additional data centers could take the partnership beyond 650 MW.

Mizuho described the lease signing as a “long-awaited catalyst” for Fermi following discussions with management about the agreement.

Fermi is set to report second-quarter (Q2) results on Thursday before the opening bell. Wall Street expects the company to report a loss of $0.06 per share on revenue of $5.99 million, according to Fiscal.ai data.

FRMI’s TensorWave Deal Details

Fermi announced late Monday that it had signed its first binding customer lease at the Project Matador campus in Texas with AI cloud provider TensorWave. The first phase is expected to generate approximately $6.5 billion in contracted revenue over an initial 15-year term.

The facility is expected to be delivered in phases beginning in the second half of 2027 and is being designed to support tens of thousands of next-generation AMD Instinct GPUs for AI training and inference.

The agreement also includes expansion rights for two additional data centers, which could bring the partnership's total capacity to more than 650 MW.

Construction at Project Matador is already underway, with approximately 6 GW of its planned 17 GW permitted and more than $1.5 billion invested in the buildout to date.

“Power is the critical constraint in AI infrastructure,” said TensorWave CEO and co-founder Darrick Horton. “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.”

Fermi’s Project Matador is a large-scale private campus under development across roughly 7,570 acres in the Texas Panhandle. The project is designed for up to 17 gigawatts of power capacity, with about six gigawatts already permitted.

Fermi debuted on the Nasdaq stock exchange in October 2025, and it is co-founded by Rick Perry, Toby Neugebauer, and Griffin Perry. Rick Perry was the Governor of Texas and served as the Energy Secretary in President Donald Trump’s first term.

What Retail Traders Think Of FRMI Stock

Retail sentiment on Stocktwits around Fermi trended in the ‘extremely bullish’ territory, with message volumes at ‘high’ levels at the time of writing.

FRMI stock is down 10% year-to-date. The iShares Russell Mid-Cap ETF (IWR) is up 23% over the past 12 months, while the Fidelity Nasdaq Composite Index ETF (ONEQ) is up 24%.

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