Fermi posted a second-quarter net loss of $25.8 million, or 4 cents per share, slightly better than Wall Street's estimate for a 5-cent loss. The company also announced a 15-year lease with AI cloud provider TensorWave at its Project Matador campus, a deal valued at about $6.5 billion in projected revenue.

FRMI shares jumped 21% on the TensorWave announcement on Monday, then rose another 6.7% on Wednesday and 2.2% in premarket trading on Thursday. The stock was last seen at $7.77 in premarket Thursday, putting it up 23% for the week.

Fermi Inc. Common Stock, FRMI

The earnings report was relatively straightforward. Fermi's Q2 net loss widened from 2 cents per share a year earlier to 4 cents per share, with the larger loss driven mainly by $26.8 million in general and administrative expenses. The company remains pre-revenue and is still in its development phase, so investors have focused more on operational milestones than on quarterly earnings.

On Monday, Fermi said it signed a binding 15-year turnkey lease agreement with TensorWave, which will become the first tenant at the Project Matador campus in Amarillo, Texas. Phase one of the agreement covers 222 MW of total facility power and is expected to generate about $6.5 billion in revenue over the life of the contract. TensorWave also has two expansion options that could triple its footprint at the site. The deal was the main catalyst behind the week's rally. The agreement reflects a broader industry pattern in which AI cloud operators are competing to lock in dedicated power capacity, as AI training and inference workloads consume substantially more electricity per facility than traditional data center computing.

Finding a tenant had been a key challenge for Fermi, and the difficulty in securing a lease partner had contributed to tensions with former CEO Toby Neugebauer, who was dismissed in April. The TensorWave agreement effectively closes that chapter.

On Wednesday, Fermi named board member Lee McIntire as chief executive officer, replacing Neugebauer. McIntire has served as an independent board director since September 2025 and brings more than 40 years of experience from Bechtel, CH2M Hill, and TerraPower. His background includes work on large-scale natural gas generation, nuclear programs, and civil infrastructure projects such as the Panama Canal expansion.

Board Chairman Marius Haas said the company completed all five of the 90-day objectives it laid out in May. Those goals included signing the TensorWave lease, appointing a CEO, forming a strategic alliance with Hillcore Energy, and receiving three Siemens F-class turbines.

The Hillcore alliance, announced on August 11, adds about 2.6 GW of incremental power generation at Project Matador through a build-own-operate-transfer structure. Under that arrangement, Fermi contributes no capital and takes on no debt for the plant. Combined with its own program, the partnership would bring total planned on-site generation to 4.8 GW within roughly 30 months. For comparison, the largest operational hyperscale data center campuses in the United States typically draw in the range of several hundred megawatts, meaning Project Matador's planned capacity would rank among the most power-dense AI infrastructure sites if fully built out.

Three Siemens SGT6-5000F turbines arrived at the Port of Houston in July, bringing Fermi's total landed power assets to 1.5 GW. The Project Matador site spans about 8,400 acres, and more than $1.5 billion has already been invested in its buildout.

Fermi also said it raised more than $431 million through convertible senior notes due 2031, with an initial conversion price of about $9.52 per share. The company said capped call transactions are intended to protect shareholders from dilution unless the stock rises to more than double its July 9 reference price.

At the end of the second quarter, Fermi reported $91.7 million in total cash and restricted cash, along with $520.1 million in outstanding debt. With the TensorWave lease secured and the Hillcore partnership adding generation capacity without additional borrowing, the company's remaining hurdle is converting its landed turbines and contracted agreements into an operational, revenue-generating facility.