Generac Holdings Inc. (NYSE:GNRC) is included among the 10 Most Volatile Stocks to Buy in S&P 500.
Generac Holdings Inc. (NYSE:GNRC) designs, manufactures, and distributes energy technology products and solutions worldwide.
Generac Holdings Inc. (NYSE:GNRC) received a boost on June 2 when the company disclosed that it had secured an agreement to supply a major data center operator with backup power generators. The contract was awarded following a rigorous qualification process, which included multiple factory visits, performance and quality system reviews, and audits across the company’s broader vendor base.
Aaron Jagdfeld, Chairman, President, and CEO of Generac Holdings Inc. (NYSE:GNRC), commented:
“This agreement positions Generac at the heart of supporting essential services and the digital economy. The successful navigation of this approval process solidifies our position as a top-tier supplier of large megawatt backup power generators and reflects the kind of relationship we expect will grow as the digital economy continues to scale.”
Generac Holdings Inc. (NYSE:GNRC) topped Wall Street estimates in its Q1 2026 report in April, supported by the strong demand for backup generators and a growing backlog from data center customers. Moreover, the company raised its guidance for full-year 2026. Generac now expects 2026 net sales growth in the mid-to-high teens percent range, up from its prior outlook of mid-teens range.
Ariel Investments, an investment management company, stated the following regarding Generac Holdings Inc. (NYSE:GNRC) in its Q1 2026 investor letter:
“Leading global manufacturer of power generation equipment, Generac Holdings (NYSE:GNRC) was the top contributor this quarter as investors looked beyond near-term earnings softness toward the company’s long-term growth potential. At investor day, management highlighted a multi-year growth trajectory supported by powerful tailwinds including rising electricity demand, higher power costs, grid reliability challenges and rapid growth in AI and data centers. Generac reaffirmed its 2026 outlook and introduced a three-year plan through 2028 targeting strong revenue growth, margin expansion and nearly 90% EBITDA growth. Strength in the Commercial & Industrial (C&I) segment, fueled by increasing data center and hyperscaler demand and a growing backlog, further boosted confidence. We believe investors are increasingly recognizing Generac’s evolution from a home backup leader to a critical power infrastructure provider. We believe a durable residential base and expanding C&I opportunity driving sustained growth should drive higher margins and strong free cash flow.”
While we acknowledge the risk and potential of GNRC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GNRC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 12 Best Dividend Stocks to Invest In According to Hedge Funds and 10 Best Renewable Energy Stocks to Buy According to Billionaires
Disclosure: None. Follow Insider Monkey on Google News.
