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Generac (GNRC), best-known for supplying backup generators for homes, has been building a bigger presence in the artificial intelligence (AI) infrastructure market for years — and Amazon (AMZN) just gave the company a major opportunity. Under the deal, Generac is set to provide roughly $2.4 billion in generators to Amazon over 2027 and 2028, while the partnership has room to expand to as much as $8 billion. Amazon also received a warrant to acquire up to 1.69 million Generac shares with a potential exercise value of about $340 million.
GNRC stock has climbed 50% so far this year, while Amazon stock is up 8% year-to-date (YTD). The deal sounds like a win-win for both companies. But does that make Generac stock a buy now?
