Stocks
Amazon's Deal with Generac Signals Shift Away from Chips and into Power
Amazon has entered into an agreement with Generac, a company known for its home backup generators, to supply $2.4 billion worth of generator equipment for Amazon's data centers.
The deal is significant as it marks a shift away from chips and into power delivery, a key bottleneck in the AI trade, according to Matthew Tuttle, CEO of Tuttle Capital Management.
Generac stock has soared by up to 32% on Thursday following the announcement, with other power companies linked to AI also experiencing significant gains.
The issuance of warrants allowing Amazon to purchase billions of dollars worth of shares is part of the momentum boosting Generac stock.