Why did Wells Fargo upgrade Generac stock?

Wells Fargo upgraded Generac due to expected increased power demand from artificial intelligence and data center growth.

What is Generac's potential with Amazon and Google?

Generac is reportedly trialing diesel generators with Amazon and is vying for a large opportunity with Google.

How has Generac's stock performed recently?

Generac's stock declined nearly 28% since late October but saw a premarket rise following the Wells Fargo upgrade.

Home / Business and Economy / Generac surges on AI data center power demand

Generac surges on AI data center power demand

19 Dec

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Summary

Wells Fargo upgraded Generac to overweight due to AI-driven power demand.
Generac stock declined recently but presents an attractive entry point.
The company is in talks with hyperscalers like Amazon for major orders.

Generac surges on AI data center power demand

Wells Fargo analyst Praneeth Satish upgraded power generator maker Generac to overweight, signaling a potential 42.3% stock increase. This upgrade is driven by anticipated surges in power demand stemming from the ongoing artificial intelligence buildout. Although Generac experienced a nearly 28% stock decline since late October following weaker-than-expected third-quarter results, Satish views this as an opportune moment for investors.

The current stock price, according to Satish, does not fully reflect the potential upside from diesel generator sales for data center backup power. Generac appears to be on the verge of securing a major hyperscaler client and is doubling its manufacturing capacity to $1 billion annually. Checks suggest the company is currently trialing diesel gensets with Amazon, a partnership that could lead to orders worth hundreds of millions.