Generac Holdings Inc. (NYSE: GNRC) rose 34.47% in pre‑market trading on September 17 after the company disclosed a landmark, long‑term supply agreement with Amazon.com. The contract calls for Generac to provide backup power generators for Amazon’s expanding hyperscale data‑center portfolio, with total payments of up to $8 billion over the life of the deal. Initial deliveries worth $2.4 billion are slated for 2027 and 2028.
The stock’s rally follows a roughly 45% year‑to‑date gain, yet it remains at about 66% of its 52‑week high. Analysts’ consensus fair‑value estimate sits near $287 per share, with street‑target prices around $333. Generac’s commercial segment posted 29% revenue growth in the latest quarter, and gross profit margins expanded to 44.5%.
The agreement bolsters Generac’s data‑center backlog, which has climbed to $1.6 billion from roughly $700 million a few months earlier, driven by two major hyperscale supply contracts and about $1 billion in new orders booked within a 90‑day window.
Generac’s AI‑driven model, launched in November 2023, has generated a cumulative return of 189.92%, outpacing the S&P 500’s 111.63% gain over the same period. The company was flagged as a high‑conviction setup in August, and its performance has been highlighted alongside other energy‑related picks that have posted strong September gains, including CVR Energy, Inspire Medical Systems and Delek US Energy.
Investors are watching the deal’s execution timeline and the impact on Generac’s earnings outlook, while the broader market gauges the implications of large‑scale data‑center power demand on the backup‑generator sector.
