Fermi Inc. (NASDAQ:FRMI) stock is trading higher by more than 19% during Tuesday’s premarket session.

On Monday, the company’s subsidiary secured its first binding customer lease at Project Matador in Carson County, Texas, with TensorWave TEX1, a unit of AI cloud provider TensorWave.

New Lease Agreement with TensorWave

The agreement covers a facility with 222 MW of total power capacity and is designed to support tens of thousands of AMD Instinct GPUs for large-scale AI training and inference.

The initial 15-year lease is expected to generate approximately $6.5 billion in contracted revenue, excluding renewals.

The lease includes expansion options for two additional data centers which could increase the partnership’s capacity to more than 650 MW.

Construction at Project Matador is progressing, with about 6 GW of the planned 17 GW already permitted and more than $1.5 billion invested to date.

The phased delivery is expected to begin in the second half of 2027, with two five-year renewal options.

Fermi expects to deliver first power in 2026, positioning the company to bring AI data center capacity online as other projects face funding and permitting challenges.

Fermi Technical Analysis

At $7.02, the stock is trading about 9% above its 20-day SMA of $6.33. It is also about 6.9% above its 100-day SMA of $6.46.

However, the stock remains about 2.3% below its 50-day SMA of $7.06. This level could act as a key decision point. A sustained move above the 50-day SMA could strengthen the recovery, while another rejection could keep the stock range-bound.

The longer-term trend remains weak. FRMI is trading about 28.9% below its 200-day SMA of $9.71. The 50-day SMA also remains below the 200-day SMA, signaling a bearish trend.

The stock has fallen 81.92% over the past 12 months. That suggests the recent strength remains a recovery attempt within a broader decline.

Momentum also shows signs of weakening. The MACD is below its signal line, while the histogram remains negative. This indicates that bullish momentum is cooling and buyers may need to regain control to extend the rebound.

Key Resistance: $7.50. This level could act as a near-term hurdle, particularly as the stock continues to battle its 50-day SMA.

Earnings And Analyst Outlook

The countdown is on: Fermi is set to report earnings on August 13, 2026 (confirmed).

  • EPS Estimate: Loss of 6 cents
  • Revenue Estimate: $5.99 million

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $13.40. Recent analyst moves include:

  • Mizuho: Outperform (Lowers forecast to $11.00) (July 28)
  • Stifel: Buy (Lowers forecast to $17.00) (June 23)
  • Evercore ISI Group: Downgraded to In-Line (Lowers forecast to $11.00) (May 15)

Fermi Price Action

FRMI Stock Price Activity: Fermi shares were up 19.39% at $7.02 during premarket trading on Tuesday, according to Benzinga Pro data.

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