Generac Holdings, Intel, Lucid Group, and Nvidia all posted sharp moves in recent trading. Generac and Lucid announced significant commercial agreements, Intel drew investor interest on partnership reports, and Nvidia rebounded with the broader technology sector. The session also saw the Federal Reserve deliver its first interest rate increase since 2023, raising its benchmark rate by 25 basis points to a target range of 3.75% to 4.00%.

Generac Soars More Than 40% on $2.4 Billion Amazon Data Center Deal

Generac Holdings jumped more than 40% in after-hours trading after announcing a long-term supply agreement with Amazon. Under the deal, the power-equipment manufacturer will supply backup generators for Amazon's growing data center network.

The contract starts at approximately $2.4 billion and could reach as much 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 arrangement.

The agreement spotlights power infrastructure as a key element of the AI buildout. Generac is best known for standby generators serving homes and businesses, and an order of this scale ties the company directly to the power demands of hyperscale data centers. As data centers grow in both size and number, demand for reliable backup power is rising fast. The deal also underscores that the AI boom is creating substantial opportunities for companies outside the traditional chip sector.

Intel Rallies on Reports of Possible SK Hynix Partnership

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 on the table, according to the reports. 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 transaction could benefit both companies at a time when AI hardware demand remains high, and the reported talks fit a broader pattern of global chipmakers adding U.S. manufacturing capacity.

Lucid Jumps on 25,000-Vehicle Robotaxi Agreement With Bolt

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. The deal gives Lucid a new growth path beyond direct consumer sales and builds on the company's existing robotaxi partnership with Uber and Nuro in the United States. It also follows an increasingly common industry structure in which vehicle makers supply the hardware while ride-hailing platforms manage the passengers.

Nvidia Rebounds as Technology 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 growth stocks some breathing room. Rate and inflation fears had weighed on the sector earlier in the week, and with the Fed now signaling further tightening could be ahead, borrowing-cost expectations remain a key variable for high-growth names.

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%. The move marks 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, suggesting the current tightening cycle may not be over. Rate increases transmit through the economy by raising borrowing costs for households and businesses, which is why the pace of further tightening matters for corporate spending plans and for how investors value fast-growing companies.

This story first appeared on CoinCentral.