Generac Rallies on Power Deal With Amazon. How to Play GNRC Stock Now.

Shares of backup-power company Generac (GNRC) soared following its supply agreement with tech titan Amazon (AMZN). Initially pegged at $2.4 billion, the deal has the potential to generate up to $8 billion if Amazon exercises additional commitments. As is increasingly common with these types of deals, Generac has also granted Amazon warrants that allow Amazon's subsidiary to buy up to roughly 1.69 million shares at a purchase price of $200.93 per share.

Generac's expertise lies in backup power generators, and that is what the company will provide to Amazon's data centers. But this was not Generac’s first major data-center success. By late July 2026, the company had already signed two multiyear supply agreements with hyperscale customers. The first included nearly $700 million of equipment scheduled for delivery in 2027, while the second agreement was signed in June 2026, although product-specific terms for 2027 and 2028 were still being finalized at the time. Generac reported a data-center backlog of about $1.6 billion for the second quarter. Management also raised its guidance for 2026 data-center revenue of nearly $450 million.