Fermi Inc. Locks In $6.5 Billion, 15-Year AI Data Center Lease
Fermi Inc. secured its first AI data center lease at $6.5 billion over 15 years, but at 18.6x forward P/E on -$1.14 trailing EPS, the market has already priced in a full earnings turnaround before it
Fermi Inc. Locks In $6.5 Billion, 15-Year AI Data Center Lease
NEW YORK, August 13 —
Fermi Inc. (FRMI) secured a $6.5 billion AI data center lease spanning 15 years, its first, validating a pivot the market had long doubted.
- Contract: $6.5 billion over 15 years, or roughly $433 million in annualized committed revenue
- Valuation: 18.6x forward P/E on -$1.14 trailing EPS implies the street has already priced in a per-share earnings swing of more than $1.50
- Catalyst ahead: next quarter's EPS, and whether the per-share loss is narrowing toward the forward figure the multiple implies
What Actually Happened
Fermi secured its first AI data center lease, a 15-year commitment worth $6.5 billion total, or approximately $433 million per year. For a company trading at $6.77 per share with a trailing EPS of -$1.14, this is not an incremental deal. It is an identity change, from speculative developer to contracted infrastructure provider with long-dated, predictable cash flow. Track where the fundamentals sit today at FRMI's stock page.
Here is what the wire missed. At 18.6x forward P/E, the market has already implied a forward EPS of roughly $0.36. Against a trailing loss of $1.14 per share, that is a per-share swing of more than $1.50, the entire bull case sitting in the multiple today. The contract earns the optimism. Whether it earns the optimism at today's price is a question only the next quarterly print can answer.
The Catch
Fermi is still losing money. A trailing loss at that level on a $6.77 stock means the 18.6x forward multiple is bidding on profitability that has not yet appeared in a single reported quarter.
A 15-year lease guarantees revenue visibility. It says nothing about margins. Data center buildout and operating costs between now and stabilized occupancy determine whether the implied forward EPS of $0.36 is achievable or a consensus overshoot. Buyers stepping in after the surge are paying for perfect execution, not a demonstrated track record of it.
Bottom Line
The contract is real, the term is long, and committed revenue at this scale is genuinely meaningful for a company that had none. Investors who held through the pivot own a validated thesis. Those buying now are paying a multiple that prices in a turnaround the income statement has not yet confirmed.
The number to watch next quarter: EPS. If the per-share loss is narrowing materially toward $0.36, the multiple holds. If losses sit near that figure, it will not, and the gap-up visible in the chart will look premature.
A full Basis Report analysis with a BUY rating digs into the contract's forward cash flow model at the Fermi Inc. full report.
Current fundamentals, valuation and filing history for Fermi Inc. (FRMI) are tracked on its Basis Report page.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Fermi Inc. reported Q2 2026 earnings while simultaneously securing a $6.5 billion, 15-year AI data center lease contract.
Sources & Filings