Fermi Stock Soars 20% on AMD Deal. Why Analysts See Hurdles Ahead.

Dow Jones
8小时前

Fermi stock jumped Tuesday after Advanced Micro Devices agreed to help the artificial intelligence infrastructure developer secure financing for a planned data center, though analysts cautioned that hurdles remain.

Shares of Fermi rose 20% to $3.90, which is good news for a stock that has declined 51% this year and is pacing toward its worst annual performance on record, according to Dow Jones Market Data. AMD added 0.7% Tuesday.

The company announced two agreements with AMD aimed at advancing its Project Matador, Fermi's flagship data center development in Amarillo, Texas. AMD agreed to provide financial backing for Fermi's existing lease with AI cloud provider TensorWave, while AMD and Fermi also established a framework to nearly triple the project's power capacity to as much as 650 megawatts.

Evercore ISI analysts called the financing agreement a "long-awaited" deal for Fermi in a note on Tuesday, saying it marks progress toward securing funding for Project Matador. They cautioned that financing remains outstanding, however, and further expansion would depend on AMD attracting additional customers.

"While the announcement represents progress toward making the project financeable, project financing still needs to be secured," the analysts wrote.

The analysts said further details about the financial terms of the TensorWave lease -- expected to generate $6.5 billion in revenue over 15 years -- are needed to determine whether the agreement warrants higher earnings estimates or a richer valuation for Fermi.

Texas Capital Securities analysts were more bullish on the news. AMD's involvement lends credibility to Project Matador and provides a clearer pat toward financing future expansion, analysts said.

Texas Capital reiterated its Buy rating on Fermi shares and a $20 price target, representing 515% upside from the stock's closing price of $3.25 on Monday, noting its financial model doesn't yet reflect the AMD announcement.

 

应版权方要求,你需要登录查看该内容

免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。

热议股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10