Generac Holdings

GNRC

Market cap $9.4B

Generac Holdings Inc. is increasingly pivotal in supplying large diesel generators as AI data center growth strains grid capacity. GNRC's commercial and industrial sales rose 9% to $358 million, driven by early shipments of megawatt-scale units for data centers. The backlog for large generators doubled to $300 million, with domestic shipments beginning in October, signaling sustained demand.

Power generation stock Generac Holdings Inc (NYSE:GNRC) was last seen up 4.8% at $148.64, after an upgrade from Citigroup to "buy" from "neutral.

GNRC buys a Sussex, WI plant to boost C&I capacity, tapping data center demand as large-megawatt orders and backlog surge with jobs planned by 2026.

The new facility will help Generac serve the booming data center growth and other core industries with capacity for large-scale backup power generators and energy solutions. WAUKESHA, Wis.

Generac Holdings Inc (NYSE:GNRC) stock was last seen up 2.3% at $140.11, after Wells Fargo upgraded the power generator to "overweight" from "equal weight," with a price-target hike to $195 from $186.

The most oversold stocks in the industrials sector presents an opportunity to buy into undervalued companies.

Generac maintains a "Buy" rating despite recent underperformance and a disappointing Q3, with valuation now appearing attractive. GNRC's growth hinges on accelerating data center demand, with management targeting $300 million in data center revenue in 2026 and $500 million+ in 2027. Residential generator demand remains weak, but C&I product sales rose 9%, and the data center backlog doubled sequentially to $300 million+.

Cold Weather Events Can Strain the Grid and Cause Dangerous Power Outages WAUKESHA, Wis. , Nov. 11, 2025 /PRNewswire/ -- Generac Holdings Inc. (NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, is encouraging homeowners across the country to build a cold weather preparedness and backup power plan to protect their homes and families during potential winter-weather induced power outages.

Aaron Jagdfeld, Generac CEO, joins CNBC's 'Squawk on the Street' to discuss how the company is investing in expanding its data center business.

AI-driven data center growth is straining the power grid, fueling surging electricity prices and bottlenecks in natural gas and turbine supply. Renewable energy companies like First Solar, Tesla, Generac, and Brookfield Renewable are positioned to benefit as consumers and hyperscalers seek alternatives. FSLR and TSLA are experiencing strong demand growth for solar and battery storage, while GNRC's backlog is surging due to data center expansion needs.