Amazon Deal Sends Generac Stock Soaring Amid Big-Budget Partnership

Generac stock surged on Thursday after the company announced a major partnership with Amazon.com. The deal has the potential to be a game changer for Generac, as it involves Amazon buying up to $8 billion worth of Generac's backup power generators for its artificial intelligence (AI) data centers under a long-term supply agreement.

The initial deliveries are projected to total $2.4 billion in 2027 and 2028, which is a significant increase from Generac's revenue of $4.2 billion in 2025. As part of the deal, Amazon received a warrant to purchase up to 1,693,745 shares of Generac's stock at an exercise price of $200.9266 per share, totaling over $340 million.

Gaining Amazon as a marquee customer and potential investor provides a major vote of confidence for the quality of Generac's equipment, which could lead to additional supply deals with other cloud computing giants.