Key Highlights

  • Fermi shares are trading 4.47% higher at $2.74 on Wednesday, October 28, 2026, against an implied prior close of about $2.62 (calculated).
  • The 52-week range runs from roughly $2.44 to $30.90, and the market capitalization was $1.67 billion at the October 27 reading.
  • The Phase I lease covers 222 MW over 15 years with a total value of about $6.5 billion.
  • The lease must close by October 31, 2026, and Fermi still needs project financing for Phase I.
  • Short interest stands at 66.81 million shares, or 19.57% of the float, with 3.91 days to cover.

Fermi Shares Rise: Why Is a Sub-$5 Data Center Developer Among the Most Active Stocks?

Fermi (NASDAQ:FRMI) shares are trading 4.47% higher at $2.74 on Wednesday, October 28, 2026, putting the stock among the most heavily traded names under $5. No dated company release accompanied today's move, so the gain is best read against the October news flow.

Fermi develops private, behind-the-meter electric grids for large-scale AI compute, with Project Matador in Texas as its flagship campus. The company completed its IPO on October 1, 2025, and had about 35 employees at the latest reading.

The market capitalization was $1.67 billion on October 27, 2026, with 640.47 million shares outstanding. Shares have fallen sharply from the $30.90 high reached over the past 52 weeks.

Fermi and AMD: What Did the Credit Support Agreement Change for the Phase I Lease?

On October 13, 2026, Fermi signed a credit support agreement with Advanced Micro Devices (NASDAQ:AMD) covering the lease obligations of AI cloud provider TensorWave for Phase I of Matador. Shares rose about 16% before the open that day, after falling roughly 89% over the prior year.

Phase I totals 222 MW on an initial 15-year term, worth about $6.5 billion, or roughly $430 million a year on average. The lease was signed in August 2026 and is the company's first binding customer contract.

A framework agreement covers up to 650 MW more across later phases, but those still need binding leases. The closing of the Phase I lease was pushed from September 22 to October 31, 2026.

Fermi Balance Sheet: Can Financing Keep Pace With More Than $1.5 Billion Already Invested?

Fermi has invested more than $1.5 billion in Matador and still needs project financing for Phase I. Cash and equivalents were $62.54 million, against total debt of $576.39 million, and trailing net income was a loss of $737.90 million, or $1.25 per share.

On April 1, 2026, the company agreed a senior unsecured promissory note with YA II PN for up to $156.25 million in committed financing for general corporate purposes. The chief executive published a shareholder letter on October 21 that addressed financing plans.

Cantor Fitzgerald cut its price target to $8 from $12 on October 16 while keeping an Overweight rating. Analysts expect about $40 million of revenue in fiscal 2026 and $2.37 billion in fiscal 2028, which depends on Phase I being built.

What to Watch Next: Will the October 31 Closing and the November 12 Report Settle the Financing Question?

The lease must close by October 31, 2026, and the third-quarter report is set for November 12, 2026. Earlier governance headlines remain in the background, including a founder lawsuit filed September 21 against three directors, and operator selections of NAES for the turbine fleet on September 28 and CBRE (NYSE:CBRE) for the first data center on September 24. Fermi lists lease closing, added conditions on AMD's obligations and raising project financing on acceptable terms as risks.