Amazon obtains right to buy stock in Generac, boosting power company's share price by over 40%

An aerial view of an Amazon Web Services Data Center known as US East 1 in Ashburn, Virginia, U.S., October 20, 2025. Jonathan Ernst | ReutersAmazon was granted warrants to purchase up to $340 million worth of Generac stock, sending shares of the backup power provider soaring more than 40% in extended trading on Wednesday.As part of the agreement, Generac said in a securities filing that it issued warrants to Amazon to acquire up to 1.69 million shares in the company at $200.93 a piece for a total investment that could be worth as much as $8 billion. Generac will supply Amazon with backup power generators for its data centers, with initial deliveries expected to total $2.4 billion in 2027 and 2028, the filing states. About 308,000 warrant shares vested immediately and the remaining tranches vest contingent upon payments for the generators.The warrants are equivalent to almost 3% of outstanding shares in Generac, which has a market cap of about $10.3 billion, as of Wednesday's close. It marks the latest infrastructure deal for Amazon, which is the cloud market leader. Last week, Amazon struck a deal with Qualcomm to use its custom artificial intelligence chips, and got warrants to acquire as much as $4 billion in Qualcomm stock.