Caterpillar Is Quietly Becoming an AI Stock. Here's the Segment Growing 72% That Proves It.
Key PointsPower equipment retail sales soared 72% in the second quarter.
Caterpillar, most known for its farm and construction equipment, is quietly transforming into an AI-focused stock. This transformation is highlighted by a 72% surge in retail sales of power generation equipment, a segment expanding at a remarkable rate. This surge is driven by the soaring demand for large generator sets and turbines, crucial for powering data centers.
With data centers consuming a significant portion of the U.S. electricity supply, expected to double by 2030, Caterpillar's power and energy segment is witnessing a boom. This growth is reflected in the company's record backlog of $72 billion, expanding by 92% in the past year. Caterpillar expects to report strong Q3 earnings, with Wall Street anticipating a 17% revenue increase and $7.03 per share earnings, up 42% from a year ago.
Investors looking for long-term growth, beyond core AI stocks like Nvidia and Alphabet, may find Caterpillar an attractive option.
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