FRMI Stock Rallies After ‘Long-Awaited’ AMD Deal, But Evercore Says Project Matador Funding Remains A Hurdle

• The agreement supports a lease for the first phase of Project Matador in Carson County, Texas, covering 222 megawatts of gross power capacity.
• Evercore called the agreement a “constructive step toward financing the first phase of Project Matador.”
• It flagged that formal agreements for Phase 2 and Phase 3 depend on AMD securing additional offtakers. 

Fermi (FRMI) shares rallied in morning trade on Tuesday, recovering from a record low in the previous session, after the company signed a credit support agreement with Advanced Micro Devices (AMD) for the first phase of its Project Matador energy and AI infrastructure development in Texas. 

However, Evercore ISI said the agreement marks progress toward financing the project, not a completed financing deal.

FRMI stock rallied more than 20% in morning trade, bucking the broader market weakness. On Stocktwits, retail sentiment around the shares improved to ‘neutral’ from ‘bearish’ territory over the past day. 

Meanwhile, AMD stock edged 0.4% lower in morning trade, with sentiment continuing to trend in ‘bearish’ territory over the past day. 

Fermi’s Deal With AMD

Fermi America said the agreement supports a lease for the first phase of Project Matador in Carson County, Texas, covering 222 megawatts (MW) of gross power capacity. The capacity aligns with Fermi’s first customer lease, announced in August.

The company called the agreement a key milestone toward securing project financing. Fermi and AMD also signed an agreement outlining a partnership and a framework for expanding the project by up to 650 MW of gross power capacity.

Evercore Sees Progress, But Financing Remains A Hurdle

Following the announcement, Evercore ISI analyst Nicholas Amicucci called the “long-awaited” credit support agreement “a constructive step toward financing the first phase of Project Matador” and “progress toward making the project financeable,” in a note to investors cited by TheFly.

However, Amicucci cautioned that Fermi still needs to secure project financing. The credit support agreement advances the process but does not, by itself, mean funding for the project has been finalized.

It said that a formal announcement covering Phase 2 and Phase 3 would depend on AMD’s success in securing additional offtakers.

Evercore maintained its ‘In Line’ rating on Fermi shares and its $11 price target, implying upside of more than 180% from current levels. However, the stock has been volatile since its October 2025 debut, and is down about 88% from its IPO level and 50% so far this year.

Read also: Dan Ives Says Semiconductor Sell-Off Is ‘Way Overdone’ As AI Spending Fears Rattle NVDA, MU, SKHY, SNDK

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