Generac Shares Surge 18% on $8 Billion Amazon Data Center Power Deal

Generac Holdings (NYSE:GNRC) shares surged as much as 18% on Thursday after the company announced a landmark, long-term supply agreement with Amazon valued at up to $8 billion to provide backup generators for its data centers.

The stock's intraday rally to around $208 per share added approximately $1.9 billion to Generac's market capitalization, which approached $12.25 billion, according to a report from Investing.com.

Details of the Agreement

The deal positions Generac as a key supplier for Amazon's critical data center infrastructure. The company disclosed that initial deliveries worth roughly $2.4 billion are anticipated to occur in 2027 and 2028.

As part of the arrangement, Amazon received a warrant to purchase up to 1.69 million Generac shares at an exercise price of $200.93. The warrant is exercisable through September 2033, with just over 300,000 shares vesting immediately upon the deal's finalization.

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Analyst Upgrades and Strategic Outlook

Wall Street analysts reacted swiftly and positively to the news, viewing it as a strategic pivot for Generac from a consumer-focused company to a significant player in the artificial intelligence infrastructure ecosystem.

• Canaccord Genuity called the agreement "landmark" and raised its price target on GNRC to $375 from $275.
• Cantor Fitzgerald described it as Generac’s "most important data-center disclosure" and reiterated an Overweight rating with a $333 price target.
• Needham and Stifel also reiterated their Buy ratings on the stock.

This agreement builds on Generac's existing data center backlog of approximately $1.35 billion for 2027. The company is now guiding toward a cumulative data center order volume of nearly $4 billion through 2028.