After chips, then internal memory—now even AI and diesel generators are being抢了
Amazon and Generac have signed a major order for backup power
Deliveries are scheduled for 2027 to 2028, totaling $2.4 billion first
Can go up to as much as $8 billion
It also comes with warrants
Amazon can receive up to 1.69 million shares of Generac
Once the news came out
Generac surged by more than 40% after hours
And the next day it rose by about 18%
The constraint is the delivery timeline
There’s a global shortage of high-power diesel generators
By the end of the year, Generac plans to expand capacity to $1.25 billion
And then triple it again in the third quarter next year
Put simply
A data center can’t lose power for a single second
Backup power has become the new bottleneck
Watching the next old industrial stock whose valuation gets rewritten by AI orders
Amazon and Generac have signed a major order for backup power
Deliveries are scheduled for 2027 to 2028, totaling $2.4 billion first
Can go up to as much as $8 billion
It also comes with warrants
Amazon can receive up to 1.69 million shares of Generac
Once the news came out
Generac surged by more than 40% after hours
And the next day it rose by about 18%
The constraint is the delivery timeline
There’s a global shortage of high-power diesel generators
By the end of the year, Generac plans to expand capacity to $1.25 billion
And then triple it again in the third quarter next year
Put simply
A data center can’t lose power for a single second
Backup power has become the new bottleneck
Watching the next old industrial stock whose valuation gets rewritten by AI orders