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Fermi (FRMI) got absolutely slaughtered last week.

The stock cratered because the company had hundreds of millions of dollars in land leases for AI data centers. They tried to break out of those leases.

The AI tenants couldn't pay.

Fermi entered into a non-binding letter of intent for Project Matador. The agreement would advance up to $150 million to fund construction costs.

No funds were ever drawn.

Here's why one broken lease could signal something much bigger across AI infrastructure spending.

What Actually Happened

Fermi holds properties for AI data centers. They set up leases with AI companies who pay rent on that land.

The problem is simple. AI companies signed into lease agreements without having funds available to pay.

This wasn't collateralized. It was an unsecured IOU.

When funding didn't materialize, the whole structure collapsed.
 

The stock is getting taken apart again today. This isn't a one-day event.

It's an unraveling.

Fermi Isn't Alone

Maybe this explains what's happening with Oracle.

They're spending way too much money on AI data centers without securing the funding first. They overestimated their power to monetize the infrastructure.

That's why Don keeps telling you this is a bubble.

AI companies are committing to build-outs they can't afford. The revenue projections haven't materialized.

The tenants who were supposed to pay rent are backing out. This could be a trickle-down problem affecting every company betting billions on AI infrastructure.

What The AI ETF Shows
 

Pull up AIIQ. The AI ETF made a lower high last week.

Take out that low from November 21st, and you're in big trouble. That's the neckline.

Break it, and the pattern confirms.

Right now, it's not a confirmed top. We've been range-bound for two and a half months.

Higher highs, lower lows, lower highs, higher lows. Chopping around with no clean trend.

But the momentum has stalled. AI is not the exciting place to be at the moment.

Why The Bubble Hasn't Popped Yet

One broken lease doesn't collapse a sector. It exposes the fault lines.

The AI trade is overheated in the near term. We're not going to hit the ground running in 2026 with AI being the place to be.

That early bull market stage where owning AI meant automatic outperformance is over.

If we get a 10% pullback in stocks, AI could actually lead us out of that low. The sector needs a reset before it can resume.

Where The Reset Creates Opportunity

That correction opens the door for picks-and-shovels trades.

Energy and natural gas feeding AI infrastructure becomes the next theme. Lower crude oil prices could tap new markets.

The next AI winners might not be the obvious names. They might be the utilities and energy providers powering the data centers that survive.

Position Before The Break

Don't chase AI into year-end.

The Fermi situation reveals a structural problem. Companies are committing capital they don't have.

Tenants signing leases they can't pay. Infrastructure spending outpacing actual demand.

Watch the November 21st low on AIIQ. That's your line in the sand.

The lease that broke might be the first crack. Position accordingly.

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