Generac Holdings (GNRC) shares surged following a long-term agreement to supply backup power generators for Amazon (AMZN) data centers.
The deal includes initial deliveries valued at approximately $2.4 billion scheduled for 2027 and 2028. The total agreement value could reach $8 billion over the life of the partnership.
Amazon is securing this infrastructure to support growing demands for artificial intelligence and cloud services.
Generac issued warrants to an Amazon subsidiary to purchase up to 1.69 million shares at an exercise price of $200.93. A portion of these warrants vested immediately, while the remainder are tied to Amazon's cumulative payments.