GE Vernova vs. Caterpillar: Which Has More Exposure to the AI Power Build-Out?

Both GE Vernova and Caterpillar have benefited from the surge in demand for power solutions from hyperscalers in the AI power build-out. However, GE Vernova appears to have a greater exposure to this trend compared to Caterpillar. GE Vernova provides power infrastructure and equipment that contribute to roughly 25% of the world's electricity supply.

They supply power-generation equipment, including gas turbines, that are essential for data centers to keep AI workloads running. These gas turbines can be delivered quickly and provide temporary power while operators wait for grid connections. GE Vernova's electrification segment has seen a surge in demand, with data center orders doubling to $5 billion in the first half of 2026, and their equipment backlog is nearly $112 billion.

Caterpillar, on the other hand, offers a more diversified range of equipment and services, including construction and mining equipment, as well as power and energy solutions. Data centers need Caterpillar's standby and backup power systems to ensure continuous AI training and inference workloads, as downtime can result in significant losses.

Their backlog stands at $72 billion, with power-generation sales rising by 72% from the previous year. Caterpillar also benefits from providing equipment for the construction and site development of data centers. While both companies have become closely tied to the AI-themed trade, leading to increased volatility in their stocks, the nature of their exposure varies.

GE Vernova's growth is primarily driven by data center orders, while Caterpillar's business is more diversified with exposure to construction, mining, and other equipment.