Fermi Inc. (FRMI) stock is trading higher Tuesday after the company announced a credit support agreement and broader partnership with Advanced Micro Devices, Inc. (AMD) to support its artificial intelligence infrastructure project in Texas.

The stock surged about 18% Tuesday, with trading volume reaching 59.41 million shares, more than three times the 100-day average of 18.82 million.

AMD Partnership Supports Initial 222 MW Buildout

Under the agreement, AMD will provide credit support for a lease covering the first phase of Fermi's Project Matador in Carson County, Texas.

The initial phase will provide 222 megawatts (MW) of gross power capacity, consistent with Fermi's first customer lease announced Aug. 10, 2026.

Fermi said the agreement marks an important step toward securing financing for the project.

The companies also signed a separate agreement outlining a partnership and framework for future expansion of up to 650 MW of gross power capacity.

Partnership Targets Growing AI Infrastructure Demand

Fermi CEO Lee McIntire said the partnership establishes a framework for the project's second and third phases.

He highlighted the company's access to land, permits, water, power equipment and fiber infrastructure as key advantages supporting development.

Meanwhile, AMD executive Mathew Hein said growing demand for AI computing is increasing the need for large-scale data center infrastructure.

He added that the collaboration will help customers deploy AMD-powered AI systems at scale while supporting AMD's data center growth.

Fermi Targets 17 GW AI Energy Campus

Fermi is developing Project Matador as a large-scale energy and AI infrastructure campus in the Texas Panhandle.

The company said it has invested more than $1.5 billion in the project's development to date.

The campus will use a private, on-site power grid designed to provide reliable electricity for AI data centers.

Fermi ultimately plans to expand the project to approximately 17 gigawatts (GW), subject to binding customer agreements. The company expects to align capital spending with customer commitments.

The planned energy infrastructure includes natural gas generation, nuclear power, utility grid connections, solar power and battery storage.

Fermi aims to address growing electricity demand from AI computing by providing dedicated power infrastructure for large-scale data centers.

FRMI Price Action: Fermi shares were up 18.34% at $3.84 at the time of publication on Tuesday, according to market data.