Generac Stock Skyrockets on Amazon Deal Worth Up to $8 Billion

Generac Holdings' stock surged 16% to $203.76 in Thursday morning trading after announcing a long-term agreement with Amazon for supplying generators to hyperscale data centers.

The multi-year deal, worth $2.4 billion, locks in volumes of backup generators for Amazon's data center footprint and reframes Generac from a consumer standby-power brand into a hyperscaler-grade infrastructure supplier.

However, the warrant grant included in the arrangement allows Amazon to capture part of the economics created by its own orders, which may dilute shareholder value.

Cummins, a peer company that builds standby power systems for data centers, remained unchanged on the session, suggesting that today's move is specific to Generac and not a sector-wide repricing of hyperscaler backup demand.