TLDR
- Generac surged over 40% after announcing a $2.4 billion deal to supply Amazon with backup generators for data centers
- Intel rallied on reports that SK Hynix may lease space or form a joint venture at Intel’s Ohio chip facility
- Lucid jumped after securing a deal to deploy 25,000 autonomous vehicles across Europe with ride-hailing firm Bolt
- Nvidia climbed more than 2% as tech stocks recovered alongside lower Treasury yields and easing oil prices
- The Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%-4.00%, its first hike since 2023
Generac soared over 40%, Intel rallied on SK Hynix talks, Lucid secured a 25,000-vehicle robotaxi deal, Nvidia rebounded, and the Fed hiked rates for the first time since 2023.
Generac Soars on Amazon Data Center Deal
Generac Holdings jumped more than 40% in after-hours trading after announcing a long-term supply deal with Amazon.
The power-equipment company will provide backup generators for Amazon’s growing data center network. The contract starts at around $2.4 billion and could reach as high as $8 billion under the full terms of the agreement.
Amazon also received warrants to purchase up to 1.69 million Generac shares as part of the deal.
The agreement puts a spotlight on power infrastructure as a key part of the AI buildout. As data centers grow in size and number, demand for reliable backup power is rising fast.
This deal shows that the AI boom is creating big opportunities for companies outside the traditional chip sector.
Intel Rallies on SK Hynix Partnership Reports
Intel shares gained after reports emerged that South Korean memory chipmaker SK Hynix is in early discussions to manufacture chips at Intel’s U.S. facilities.
Two possible structures are being discussed. SK Hynix could lease part of Intel’s Ohio semiconductor plant, or the two companies could form a joint venture alongside major cloud computing firms.
No agreement has been confirmed. Intel has invested heavily in building out U.S.-based chip manufacturing and bringing a partner like SK Hynix into its Ohio complex could help fill capacity.
SK Hynix is a leading maker of high-bandwidth memory, a type of chip that is in strong demand for use with AI processors. A deal could benefit both companies at a time when AI hardware demand remains high.
Lucid Jumps on 25,000-Vehicle Robotaxi Agreement
Lucid Group shares rose around 5.5% in premarket trading after announcing an autonomous vehicle partnership with European ride-hailing company Bolt.
Under the agreement, the two companies plan to deploy at least 25,000 self-driving Lucid vehicles across Europe. Bolt has set a longer-term target of building an autonomous fleet of 100,000 vehicles by 2035.
The vehicles will be built on Lucid’s upcoming Midsize platform and will use Nvidia’s Hyperion autonomous-driving system.
This deal gives Lucid a new commercial growth path beyond direct consumer sales. It also builds on Lucid’s existing robotaxi partnership with Uber and Nuro in the United States.
Nvidia Rebounds as Tech Stocks Recover
Nvidia shares climbed more than 2% as investors moved back into technology stocks following a string of volatile sessions.
Amazon also gained more than 2% on the day, helping the Nasdaq outperform the broader market.
Falling oil prices and lower long-term Treasury yields gave some breathing room to growth stocks. Rate and inflation fears had weighed on the sector earlier in the week.
Demand for Nvidia chips remains strong. AI cloud provider Nebius raised prices again for access to certain Nvidia chips, pointing to continued pressure on supply.
Fed Raises Rates for First Time Since 2023
The Federal Reserve voted unanimously to raise its benchmark interest rate by 25 basis points, setting the new target range at 3.75% to 4.00%.
This is the first rate increase in more than three years and comes as policymakers look to keep inflation under control.
Sixteen of the Fed’s 18 policymakers expect at least one more rate hike before the year is out. That suggests the current tightening cycle may not be over.
Investors will be watching closely for any further signals from the Fed on the pace and scale of future increases.
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