Generac Surges on $8 Billion Amazon Data Center Generator Deal With Warrants Attached

Generac Holdings shares exploded higher Wednesday evening and carried those gains into Thursday's session after the company announced a long-term supply agreement with Amazon to provide backup power generators for Amazon's expanding data center network. The deal calls for initial deliveries valued at $2.4 billion spread across 2027 and 2028, with total payments tied to the broader relationship potentially reaching $8 billion.

The agreement comes with a notable catch embedded in the contract: Amazon receives warrants alongside the supply arrangement, giving it an equity stake on top of the purchasing commitment. The invezz.com report flagged this structure as a meaningful concession, noting that Amazon secured more than just equipment from the deal.

Shares surged roughly 34% in extended trading Wednesday before pulling back somewhat during Thursday's regular session, where GNRC was last seen up approximately 19% to 27%, depending on the intraday snapshot. At one point shares traded at $223.23. The stock had already gained 59.4% year to date heading into Thursday. Canaccord raised its price target on GNRC to $375 following the announcement. Analysts cited earnings upside from the deal and noted that Amazon represents a second major hyperscaler customer locked into Generac's supply chain, reinforcing the company's positioning as a key infrastructure provider for the AI buildout.