AMD Support Strengthens the Bullish AI Infrastructure Thesis!
AMD adds credibility: On October 13, Fermi announced AMD credit support for Project Matador’s initial 222 MW of gross power capacity, plus a framework for expansion to 650 MW.
This could improve access to project financing, although funding still needs to be secured.
A significant anchor customer: The TensorWave lease represents approximately $6.5 billion in contracted revenue over 15 years, subject to closing conditions.
Updated plans target phased delivery beginning in Q4 2027, providing a potential foundation for long-term cash flows.
Physical progress: Three GE Vernova gas turbines arrived on October 15.
Securing and delivering generation equipment could become a competitive advantage as AI developers compete for reliable power.
A more capital-efficient strategy: In his October 21 shareholder letter, CEO Lee McIntire outlined plans for powered-land deals, customer contributions and institutional financing.
If executed, these measures could reduce Fermi’s upfront funding requirements.
My bullish thesis: Securing financing and converting additional customers into binding contracts could drive a meaningful rerating.