This AI-picked stock jumps 18% on Amazon’s $8 billion power deal

On Thursday, Generac Holdings (NYSE:GNRC) experienced a dramatic 18-19% intraday surge, reaching approximately $207-208 per share, after securing a landmark $8 billion supply agreement with Amazon for data-center backup generators. The AI-powered Strategies model at Investing.com had previously identified Generac as a top holding.

Quality Compounders, an Investing.com strategy, highlighted Generac as a financially durable, high-return business. The single-session gain comprised the bulk of the stock's 14.2% increase this month, with initial deliveries of around $2.4 billion expected in 2027 and 2028. Amazon received a warrant to purchase up to 1.69 million Generac shares at $200.93, exercisable through September 2033, with nearly 300,000 shares vesting immediately.

This deal elevated Generac's market cap by approximately $1.9 billion, bringing it to near $12.25 billion. Analysts reacted swiftly, with Canaccord Genuity raising its price target to $375 from $275, and Cantor Fitzgerald reiterating an Overweight rating at $333, deeming the agreement as the most significant data-center disclosure since Generac's first hyperscaler win.

The deal boosted Generac's adjusted EPS to $2.91, surpassing estimates of $2.00, and the company now anticipates nearly $4 billion in cumulative data-center volume through 2028. Nine of the strategy's 15 holdings are up this month, including Marvell and Qualcomm, while laggards like Jefferies Financial and ON Semiconductor declined.

Other AI-infrastructure and quality-earnings strategies are outperforming the S&P 500, with Quality Compounders leading by 2.41 percentage points this month, followed by Aussie Materials and Aussie Tech Titans.