Generac Stock Soars on $2.4B Amazon Data Center Deal

Generac Holdings Inc.'s stock has surged by 17.85% after signing a long-term supply deal with Amazon to power its data centers.

The agreement, worth around $2.4 billion in initial deliveries from 2027-2028, has significantly boosted Generac's growth prospects and valuation.

As part of the deal, Amazon received a warrant to purchase up to 1.69 million GNRC shares at $200.93 per share, potentially increasing the total contract value to around $8 billion if fully vested.

Cantor Fitzgerald has reiterated its Overweight rating on GNRC with a price target of $333, while Wells Fargo also maintained an Overweight rating and a $280 target, citing Generac's likely exemption from a Trump administration Executive Order on foreign-sourced grid equipment.