Generac (GNRC) makes backup power and energy generator systems. Before the AI rally, this was a mature business people only remembered when a hurricane hit. However, that's changing quickly as the company now sees heavy demand from data center companies.
Last month, Generac signed a deal to supply backup generators to Amazon's (AMZN) data centers, and the agreement is worth up to $8 billion. The first $2.4 billion of deliveries will happen next year and in 2028. Remember, Generac's total sales last year were just $4.2 billion.
