Why Generac Stock Soared Today

Key Points Generac will provide crucial backup power to Amazon's data centers. Amazon could invest as much as $340 million in Generac. 10 stocks we like better than Generac › Shares of Generac (NYSE: GNRC) surged on Thursday after the generator maker entered into a lucrative partnership with Amazon.com (NASDAQ: AMZN) . Image source: Getty Images. Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue » This deal has the potential to be a game changer for Generac Amazon will buy up to $8 billion worth of Generac's backup power generators for its artificial intelligence ( AI ) data centers under a long-term supply agreement. Initial deliveries are projected to total $2.4 billion in 2027 and 2028. For context, Generac earned $4.2 billion in revenue 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. That's a total of over $340 million. Nearly 308,000 of those shares are already vested. The rest will vest over time as orders are placed and paid for. The warrant expires on Sept. 16, 2033. A valuable seal of approval Daat centers run on electricity. Generac's generators can supply uninterrupted power during blackouts or other temporary outages. Gaining Amazon as a marquee customer and potential investor provides a major vote of confidence for the quality of Generac's equipment. That could lead to additional supply deals with other cloud computing giants, and, by extension, more gains for Generac's shareholders. Should you buy stock in Generac right now? Before you buy stock in Generac, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Generac wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $412,074 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,314,319 !* Now, it’s worth noting Stock Advisor’s total average return is 932 % — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 17, 2026. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy .

Generac will provide crucial backup power to Amazon's data centers.

Shares of Generac (NYSE: GNRC) surged on Thursday after the generator maker entered into a lucrative partnership with Amazon.com (NASDAQ: AMZN) .

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

Amazon will buy up to $8 billion worth of Generac's backup power generators for its artificial intelligence ( AI ) data centers under a long-term supply agreement. Initial deliveries are projected to total $2.4 billion in 2027 and 2028.

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. That's a total of over $340 million.

Nearly 308,000 of those shares are already vested. The rest will vest over time as orders are placed and paid for. The warrant expires on Sept. 16, 2033.

Daat centers run on electricity. Generac's generators can supply uninterrupted power during blackouts or other temporary outages.