Amazon has agreed to buy at least $2.4 billion of backup generation systems from Generac Holdings for delivery in 2027 and 2028, with the broader arrangement potentially reaching $8 billion as future purchases and payments are made. Generac shares rose 18.4% to close at $207.23 Thursday, after reaching an intraday high of $231.89. The contract is significant relative to Generac’s $4.2 billion in 2025 revenue. Amazon received warrants to purchase up to 1,693,745 Generac shares at $200.93 each, with about 308,000 already vested and the remainder vesting as payment milestones are reached. The warrants expire on Sept. 16, 2033. Roth Capital raised its Generac price target to $250 from $214 while maintaining a Neutral rating. Generac plans to triple manufacturing capacity for large-format generators by August 2027, creating both an opportunity and an execution challenge. The deal identifies Amazon as the previously undisclosed hyperscaler behind Generac’s second major data-center contract and reinforces investor interest in power generation, transmission, cooling, construction and fuel infrastructure supporting AI expansion. South Korean cable and power-equipment stocks also advanced as investors extended the AI infrastructure trade beyond chips and cloud services. Amazon’s AWS division holds a 28% global cloud-market share, reported $42.2 billion in quarterly revenue and $16.6 billion in operating income, and the company has raised its 2025 capital-expenditure plan to $220 billion.