The AI boom gave a HUGE boost to a big stock yesterday. Some might even call it the latest AI darling. It’s…Caterpillar Inc. (CAT). Yes, Caterpillar.
What does a company that makes “Dirty Jobs”-style equipment like dump trucks, bulldozers, excavators, heavy duty engines, and power generation equipment have to do with AI? Simple. Data center builders and operators need the stuff. A TON of it!
Check out my MoneyShow Chart of the Day, a daily chart of CAT going back 12 months. You can see the stock surged 9.8% on Thursday alone, hit an all-time high, and extended its one-year gains to 187%!
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CAT: The Latest “AI Poster Child”
Source: StockCharts.com
The driver of the action: Caterpillar reported Q1 profit of $2.5 billion, or $5.47 per share, up from $2 billion, or $4.20 per share, a year earlier. After adjusting for one-time items, EPS of $5.54 trounced analyst estimates of $4.65.
Revenue surged 22% to $17.4 billion, well ahead of the $16.5 billion estimate. Plus, the company raised its full-year targets.
CEO Joe Creed specifically cited AI-related construction for boosting the company’s prospects. Sales in the power-and-energy unit climbed 22%, helped by demand for turbines and related services. Revenue at its construction-industries division soared 38% as dealers stocked up on more of its equipment.
Bottom line? The hyperscalers and other Big Tech names get a lot of AI-related press. Meta Platforms Inc. (META) stock, for one, tanked 8.5% yesterday after the company raised its capital expenditure forecast for 2026 by another 7% – to as much as $145 billion.
But a whole new group of AI darlings is gaining attention now. Even if they’re companies that don’t have anything to do DIRECTLY with AI tech.
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