TLDR
- Generac stock jumped 18.4% after announcing an $8 billion supply deal with Amazon
- Amazon will buy backup power generators for its AI data centers
- Initial deliveries worth $2.4 billion are set for 2027 and 2028
- Amazon received warrants to buy up to 1.69 million GNRC shares at $200.93 each
- Roth Capital raised its price target on GNRC to $250 from $214, keeping a Neutral rating
Generac (GNRC) stock jumped 18.4% on Thursday, closing at $207.23, after the company announced a long-term supply agreement with Amazon to provide backup power generators for AI data centers.
The deal is valued at up to $8 billion, making it one of the largest supply contracts in Generac’s history. For reference, Generac posted $4.2 billion in total revenue in 2025, so this agreement alone could nearly double that over time.
Initial deliveries under the agreement are projected to reach $2.4 billion across 2027 and 2028. The rest of the contract will fulfill as Amazon scales its data center buildout.
As part of the deal structure, an Amazon subsidiary received warrants to purchase up to 1,693,745 Generac shares at an exercise price of $200.93 per share. That represents a total potential investment of over $340 million.
Nearly 308,000 of those warrant shares are already vested. The remaining warrants will vest gradually as cumulative payments from Amazon hit certain thresholds. The warrants expire September 16, 2033.
What the Amazon Deal Means for Generac
Data centers run around the clock and cannot afford power interruptions. Generac’s backup generators are designed to kick in during blackouts or grid outages, making them a natural fit for large-scale cloud infrastructure.
Landing Amazon as a customer at this scale is a major endorsement of Generac’s equipment. It could open doors with other hyperscalers looking for reliable backup power solutions.
Generac’s stock hit an intraday high of $231.89 on the news before pulling back slightly. The 52-week range sits between $134.80 and $296.44, so even after today’s move the stock remains below its June 2026 peak of $295.54.
The stock is up 47.2% year to date, though investors who bought five years ago are still underwater, with a $1,000 investment now worth around $477.
Analyst Reaction
Roth Capital moved quickly after the announcement, raising its price target on GNRC from $214 to $250. The firm kept its Neutral rating but described the deal as “transformational” and said it sees the risk/reward as “increasingly positive.”
The analyst updated its model to include a preliminary view of potential commercial and industrial data center deployments tied to the Amazon agreement.
Average daily volume on GNRC sits around 1.2 million shares. Thursday’s session saw 7.4 thousand shares traded, suggesting the move was driven by conviction rather than broad retail activity.
Generac has seen 28 single-day moves greater than 5% over the past year, making it a volatile name. But an 18% single-day gain is rare even by those standards.
The last major move before today was a 4% drop roughly a month ago, tied to a weaker-than-expected U.S. industrial production report for July.
GNRC’s market cap now sits at approximately $12 billion following Thursday’s rally.
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