edit1: All the images got moved over to imgur because the post kept getting flagged for media content. If you want to see the full version with pictures, check the post history of Capital-Row6633
I'm guessing this goes up after market close, but I'm home from work now, so here's my YOLO.
Not financial advice. I'm just a regard on WSB posting my own research, not a recommendation. Do your own homework.
TL;DR up front
FRMI IPO'd at $21, spiked to $37, got smoked down to $4.47 after the CEO was fired, and is now sitting around $6.50. This week they landed their first real customer and hinted that the lease will be guaranteed by an unnamed major AI company — most of the market is betting it's AMD. AMD also just closed its biggest-ever bond sale, settling Monday. Separately — and I'd argue this matters even more — both CoreWeave and Nebius reported earnings this week saying they physically cannot secure enough contracted power no matter what they're willing to pay, which tells you something about where this whole sector is going regardless of how the AMD rumor plays out. Institutions have been piling in hard. A subpoena also hit after close today, and I don't think it means what people will assume.
The backstory
Fermi IPO'd on October 1, 2025 at $21 a share to fund Project Matador, a planned 17-gigawatt private power and data center complex near Amarillo, Texas, mixing natural gas, nuclear, solar, and battery storage. Shares hit an all-time high of $36.99 the following day on story alone — no tenants, no revenue yet.
Then it unraveled. On April 17, 2026, the board terminated co-founder and CEO Toby Neugebauer "for cause," citing conduct that disrupted the company and jeopardized key relationships. Neugebauer pushed back, sued, and tried to force a shareholder vote to stack the board with his own nominees, himself included. What followed was months of litigation and a consent-revocation battle. The board itself acknowledged the stock had dropped more than 80% under his leadership. The low of $4.47 hit in early April, right in the thick of the fight.
[\[Image\]](https://imgur.com/a/tCfkEZm)
New leadership, backed by the company's second-largest shareholder, came out on top and laid out a 90-day plan on the Q1 call: sign tenants, keep construction moving, strengthen the balance sheet, and push harder on hyperscaler conversations. Since then, shares have recovered roughly 40-45% off the bottom.
I'm walking through all this because the bear case for months has boiled down to "no revenue, no tenants, dysfunctional leadership." That case just took a real hit, because they actually delivered on step one.
The TensorWave deal
On August 11, Fermi announced a 15-year lease with TensorWave, an AI cloud provider running entirely on AMD hardware. Terms: 222 megawatts in phase one, expansion rights up to 650 megawatts across three phases, roughly $6.5 billion in contracted revenue over the life of the deal, delivery beginning second half of 2027.
What jumps out is that Fermi disclosed the lease is expected to be guaranteed by "one of the global leaders in AI," without naming a name. The market has zeroed in on AMD, and there's real logic behind that guess: AMD Ventures has backed TensorWave twice — its Series A, and then leading the $350 million Series B at a $1.55 billion valuation. TensorWave's whole fleet runs on AMD Instinct GPUs. This isn't just me connecting dots — financial media picked up the same link within days of the announcement.
Fermi's latest 10-Q gives the company until September 30, 2026 to nail down a guarantor arrangement like this, so there's a real deadline attached, not some vague someday.
The reasoning for why AMD would do this: it's the same playbook Nvidia has run with its neocloud partners for a while — back the power lease so your GPU customer can secure financing, which gets chips deployed faster and turns your reported demand into actual installed capacity instead of a backlog line item. If T