Stocks
Generac Secures $2.4 Billion Deal with Amazon for Data Center Backup Generators
Generac Holdings Inc., (GNRC), has secured a significant long-term supply agreement with Amazon, valued at $2.4 billion, for backup generators to be delivered over 2027-2028.
The deal positions Amazon as Generac's second hyperscaler customer and includes an equity warrant for approximately 1.69 million Generac shares.
Needham reiterated its Buy rating with a price target of $283, implying roughly 60% upside potential, following the announcement.
The agreement addresses concerns related to engine sourcing after an August 2026 Executive Order addressing foreign-produced bulk-power-system equipment.